Taxable relevant trust meaning

This Checklist This Checklist should be read alongside Practice Notes: Trusts—disclosure of beneficial ownership information through the Trust Registration Service (TRS), and Practice Notes: record-keeping and Trust Registration Service (TRS). See also Practice Notes: Trust Registration Service (TRS)—table of registration requirements and deadlines, and Trust Registration Service (TRS)—trusts excluded from registration. These Practice Notes provide guidance on trustees’ obligations arising from implementing, in relation to trust registration, the EU’s Fourth Anti-Money Laundering Directive, Directive (EU) 2015/849 (4MLD), via the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, and the EU’s Fifth Anti-Money Laundering Directive, Directive (EU) 2018/843 (5MLD), via the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (MLR 2020), SI 2020/991. As part of this implementation, and for the purposes of this Checklist, references to MLR 2017, SI 2017/692 include the amendments incorporated when MLR 2020, SI 2020/991 took effect, unless stated otherwise. Beneficial owners of a trust include the settlor(s), trustee(s), beneficiaries, and any other...

In this issue: Probate Elderly and vulnerable clients Spouses, civil partners and cohabitants UK taxes for Private Client HMRC Manuals updates Budgets and Finance Bills Digital assets and cryptoassets International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis®PSL community New and updated content Dates for your diary Trackers Latest Q&As Useful information Probate Court Funds Office reduces special and basic accounts interest rate Effective 12 June 2024, the Court Funds Office lowered interest across special and basic accounts. Rates on special accounts shifted from 6.00% to 5.25%, while basic accounts dropped from 5.00% to 3.94%. See LNB News 16/07/2024 55. For a roundup of key rates relevant to Private Client work, refer to Practice Note: Key interest rates—Private Client. Elderly and vulnerable clients Discrimination challenge over social care charging policy (R (YVR (a...

In this issue: Trusts Court of Protection UK taxes for Private Client HMRC Manuals updates Tax avoidance, evasion and non-compliance Budgets and Finance Bills Insolvency—Private Client International Question of the week Additional Private Client updates this week Daily and weekly news alerts LexTalk®Private Client: a Lexis®PSL community New and updated content Dates for your diary Trackers Latest Q&As Useful information Trusts FTT finds acquisition of property gave rise to a resulting trust (Raveendran v Revenue and Customs Commissioners) The FTT examined an appeal against a discovery assessment arising from the disposal of a property. The taxpayer had omitted the disposal from his return for the relevant year, even though the asset was transferred to his sister-in-law. He had bought the property, in substance, for his brother’s benefit (the brother carried on business from the premises), but the brother’s bankruptcy meant he could not obtain borrowing to...

Background This appeal considers whether VAT ought to have been levied on the Trust’s provision of car parking facilities. As a general rule, VAT is imposed on supplies of goods and services in the usual way. However, Article 13 of Directive 2006/112/EC (the Principal VAT Directive, PVD) together with section 41A of the Value Added Tax Act 1994 (VATA 1994) establish an exception for public bodies when they are acting as public authorities. A body is ‘acting as a public authority’ when it operates under a SLR. An SLR arises either where the public body is required by law to carry out the activity in a particular manner which does not apply to a private operator, or where the authority relies upon a specific public law power to perform the activity. If that exception applies, the public authority is not treated as a taxable person and therefore is not required to charge VAT on its relevant supplies of goods or services, unless regarding the authority as non-taxable...

Money Laundering Regulations 2017 and Money Laundering Regulations 2020 The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, sit within the UK’s anti-money laundering and counter-terrorist financing framework. They took effect on 26 June 2017 to implement the EU’s Fourth Anti-Money Laundering Directive, Directive (EU) 2015/849 (4MLD), and have subsequently been broadened significantly by the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (MLR 2020), SI 2020/991. Those 2020 amendments give effect to aspects of the EU’s Fifth Anti-Money Laundering Directive, Directive (EU) 2018/843 (5MLD), concerning the registration of trusts. The Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511, also transposed elements of 5MLD into UK law; however, they addressed areas other than trust registration and therefore fall outside the ambit of this Practice Note. Unless indicated otherwise, references in this Practice Note to MLR 2017, SI 2017/692, should be read as including the changes introduced by MLR 2020, SI 2020/991. The chief focus of...

This Practice Note sets out when there is an obligation to register a trust with the Trust Registration Service (TRS). The material presented in this table is drawn from the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as subsequently amended by the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (MLR 2020), SI 2020/991, together with the Money Laundering and Terrorist Financing (Amendment) Regulations 2022 (MLR 2022), SI 2022/137. On 15 March 2021, HMRC indicated that the original deadline of 10 March 2022 for registering trusts on the TRS, where registration is mandated under the EU’s Fifth Anti-Money Laundering Directive (EU) 2018/843 (5MLD) and MLR 2020, SI 2020/991, would be deferred by around twelve months from the point at which the expanded TRS was released. The expanded TRS became accessible to all users on 1 September 2021. It was also made explicitly clear that any non-taxable trusts in existence on or after 6 October 2020 must...

Overview of the types of death in service benefits and their tax treatment Employers can provide three common kinds of death in service protection, often described as ‘life assurance’ or ‘life cover’, by arranging a life policy for their staff who are eligible: the registered group life policy the relevant life policy the excepted group life policy These arrangements share the following common features and conditions: employees eligible for cover must be aged from 16 to 74 inclusive using a discretionary trust will normally prevent any inheritance tax (‘IHT’) charge arising on an employee’s death premiums paid by the employer are usually deductible for tax premiums are not treated as a taxable benefit in kind for employees The registered group life policy This is a group arrangement that is registered with HMRC under Part 4 of the Finance Act 2004 (FA 2004). It provides employers with a flexible way to meet...