Understanding the Taxation of Trusts

This course is aimed at Private Client practitioners who hitherto have only tackled estate administration and accounts and who wish to develop their knowledge. It deals with the whole range of taxes: Income Tax, Capital Gains Tax and Inheritance Tax, with the emphasis on clear and practical explanations of this complex area.

Income Tax and CGT

The calculation of tax payable on trust income and the burden of this tax on trustees and beneficiaries is often difficult to understand and even more difficult to explain. This part of the course will cover:

• The respective liabilities of trustees and beneficiaries with a particular focus on Life Interest versus Discretionary Trusts
• The treatment of dividend income
• The special problems arising from settler interested trusts
• Now that trusts are taxed at 28%, when does the Capital Gains Tax charge arise and can it be avoided?
• Actual and deemed gains
• The availability of holdover, entrepreneurs and principle private residence relief
• The ways in which liability can be minimised or avoided

The provisions of Finance Act 2006 made major changes to the IHT treatment of trusts. This part of the course examines these rules to show which trusts are subject to the Discretionary Trust (relevant property) regime, whether created in lifetime or by will, and then goes on to consider how IHT is calculated.

• Entry charges
• 10 year (periodic) charges
• Exit charges
• Use of pilot trusts and multiple trusts
• Planning Issues

Course Dates

18/09/2012 Leeds	14:00 - 17:15 Venue Information
19/09/2012 London	14:00 - 17:15 Venue Information

Joe Swift 
FCA, FCCA, ATII, TEP, Dip PFS, head of Private Capital Group of Cobbetts, LLP and formerly a Tax Partner at Deloitte and Touche. Joe has lectured widely on tax and estate planning to various professional groups and clients.