IR185 vouching estate income

Members will be aware of the interim measure introduced by HMRC following the issue of its Income Tax: Personal Savings Allowance Update on 1 April which was commented upon by STEP in its Industry News comment on 4 April. In the comments submitted by Liam O’Neill he asked about the effect this would have for beneficiaries and referred to R185. To my knowledge this form has not been redesigned to include a section for gross interest from which tax has not been deducted. Presumably therefore, where it is not necessary for PRs /Trustees to report gross income to HMRC (i.e. it is under £500) we should notify a beneficiary by letter of the amount he needs to include in calculating what his gross interest amounts to for the fiscal year.

Patrick Moroney
BWL Solicitors