The April edition of the newsletter highlights the following:
CGT on UK property paper return: reminding trustees and agents that HMRC has made the paper version of the CGT on UK property return available to download, for a trial period until the end of June 2023, in response to industry feedback.
Simplifications for trusts and estates: highlighting Finance (No 2) Bill 2023 changes to income tax for trusts and estates, following publication of a summary of responses to HMRC’s 2022 consultation on low-income trusts and estates alongside the Spring Budget 2023.
Tax-free limit for trust income:noting the formalised and extended tax-free amount from 6 April 2024, meaning that trusts and estates with income of all types up to £500 will not report or pay tax on that income (although where income exceeds £500 tax will be payable on the full amount).
Basic rate band withdrawn:from 6 April 2024 the basic rate of tax is withdrawn from the first £1,000 slice of income for accumulation and discretionary trusts. This means that, where the new £500 tax-free amount is exceeded, the trust rates of tax will apply to all of the income.
CGT on divorce: reminderof various Finance (No 2) Bill 2023 changes, including allowing spouses/civil partners in the process of separating up to three years to make no gain/no loss transfers of assets when they cease to live together.
The April edition of the newsletter highlights the following:
CGT on UK property paper return: reminding trustees and agents that HMRC has made the paper version of the CGT on UK property return available to download, for a trial period until the end of June 2023, in response to industry feedback.
Simplifications for trusts and estates: highlighting Finance (No 2) Bill 2023 changes to income tax for trusts and estates, following publication of a summary of responses to HMRC’s 2022 consultation on low-income trusts and estates alongside the Spring Budget 2023.
Tax-free limit for trust income:noting the formalised and extended tax-free amount from 6 April 2024, meaning that trusts and estates with income of all types up to £500 will not report or pay tax on that income (although where income exceeds £500 tax will be payable on the full amount).
Basic rate band withdrawn:from 6 April 2024 the basic rate of tax is withdrawn from the first £1,000 slice of income for accumulation and discretionary trusts. This means that, where the new £500 tax-free amount is exceeded, the trust rates of tax will apply to all of the income.
CGT on divorce: reminderof various Finance (No 2) Bill 2023 changes, including allowing spouses/civil partners in the process of separating up to three years to make no gain/no loss transfers of assets when they cease to live together.
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