Trusts and estates savings income dispensation

Does anyone know whether HMRC have agreed the dispensation for savings income of trusts and estates where the tax due is less than £100 has been extended again to the current tax year?

Simon Northcott

I spoke to HMRC yesterday about this and they advised that the system is currently under review but we can continue using the dispensation until further notice.

Rebecca Pryce

HMRC’s guidance on when a Trust needs to register under the TRS states that we “do NOT need to register a client’s trust if:
•the trust has to pay Income Tax of less than £100 and this only came from interest”

The guidance was updated on 16th April 2019 so this suggests it still applies for 2018/19 at least and as it does not state that this exemption ends at 5th April 2019 I would assume it continues until HMRC state otherwise.

The LITRG also confirms that the £100 threshold applies for estates up to 2018/19 at least but again I can not see any guidance from HMRC saying that this has been revoked.

Katriona McEwan
MHA MacIntyre Hudson