Fees for work done pre ten year charge and IHT100

Trusts Discussion
1

Hello
When completing a ten year charge IHT100 do you deduct the fee for completing this from liabilities?
Also can you deduct the accounts WIP to the date of the ten year charge?

I have a TYC on 1/8/2021. I have circa £700 of WIP for work done on the trust pre 1/8/2021. I will also have a fee of about £800 for the IHT100 that will charged, can I deduct these as liabilities from the ten year charge?
I get mixed views, some say yes as it is for work pre 1/8/2021, and some say it is not legally enforceable as at 1/8/2021 so no.

Interested in views and others experiences.

Thanks.

2

The TYA charge is based on the value of the trust on that date.
If there are costs that have not been paid to that date and have not been recorded as creditors/payable yet, then an accrual can be made. Just include this info as additional info on the D40. Its up to the trustees if they also want to accrue the fee for the IHT return which is usually done after the TYA.

I have always worked on the basis that the figures need to show the ‘true & fair’ value of the trust on the TYA, and as long as the D40 contains the disclosure of any assumptions made than that is fine to include those adjustments.

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3

I tend to agree. WIP to date of TYA and the work to be done on the 2020/21 accounts, plus the 2020/21 Tax liability in January 2022, were all deducted.
I didn’t deduct the fees for the TYA work as that is something done after the date of the TYA, but the amounts are such that it won’t make much difference either way.
Thanks.

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