TRS: position re property where two legal owners but only one beneficial owner

Trusts Discussion
21

I agree that s.12D TMA 1970 provides an alternative to notification by 5 October in delivering a ‘purported return’ as described therein by 31 January next following the tax year.

Such a return would give details of income and gains, and the tax liability thereon. However, the information to be provided to the TRS under regulation 45 does not include any details of the tax for which the trustees are liable.

No information supplied to HMRC in their guise as the Tax Registration Service seems be an acceptable alternative to sections 7 or 12D TMA 1970.

Ray Magill

22

Of course I agree. My point is that as s7 is alive and well, and taken seriously enough by Parliament to cater specifically for the almost self-evident s12D situation, it behoves HMRC to at least remind trustees that this is so. While you and I might concur it may be lost on a lay trustee who might think that because HMRC is overseeing both TRS and the tax system that notification to them via TRS was all they needed to do.

Jack Harper