TRS and taxable trusts IHT SDLT SDRT

I have just received a letter from HMRC Business Tax and Customs Trusts dated 18 January 2023
" Thank you for your letter dated 24 August 2022.
If the trust is not liable to income tax or capital gains tax you would go through the registration process with the trust being non-taxable.
IHT, SDLT and SDRT all require separate references that are not related to the Trust Registration Service"

Well, fancy that. Not taxable but taxable. And such a prompt response.

Jack Harper

Yes, I came to this conclusion a while back. I registered a trust that was purely liable for an IHT exit charge as being a “taxable trust” only to get issued with historical trust income tax returns to complete, and penalties! If I remember rightly, one of the first questions that comes up when going through the TRS process is “is there any tax liability for the current tax year” or words to that effect. Thinking “oh yes we have IHT to pay” I selected yes and it took me down the taxable trust route and the issues that followed. I don’t recall seeing anything in the guidance clearing this up.