Trust Registration Service and Interaction with Returns

I have received a number of queries on this topic and would welcome views … here are a couple of examples
1 Legal and beneficial owners of property are different. Rental income – beneficiaries may or may not have tax liabilities. Normally, consider as bare trust and declare income on personal tax returns only if relevant. This would now require registration for TRS but what about SA … do we continue to included on personal TR does “trust” register for SA?

2 Interest in possession trust. Register under TRS. Would anyway register for SA. But, may mandate income to beneficiary. May on the tax return tick mandated box and so avoid subsequent entries – but what about update box?
May not have TR issued – do we need to insist on doing one e.g. to be able to tick box?

With an interest in possession trust will you not need to register for CGT even if you mandate income? I’ve assumed I will and registered any such,

In many of these situations there may be no CGT for years but if you are referring to scenario 2. I state I would register for SA but sometimes a return is not issued because it is instead done on personal return so the only reason for doing a trust return is to tick the updated box ?

  1. No need for trust to register for SA. There is no requirement for bare trustees to register for SA so long as any rental income is declared by the beneficiaries on their respective SA returns.

  2. Notify HMRC that income of the iip trust has been mandated to the iip beneficiary who will return the income on an arising basis, simply then requesting that HMRC agree to the trustees making no SA return and that no such returns will be sent out to the trustees. No need to request a return just to tick the mandate box.

Malcolm Finney

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Thank you Malcolm. That was my take but wanted to check.