Revenue and Customs Brief 20/07
Submit Articles Back to Articles
Issued 9 March 2007
New form R185(Trust Income) for 2006-07
A new version of form R185(Trust Income) will be available from April 2007.
It has been improved and updated to reflect a change in the law. The new version
of the form includes a new box 7.3A with guidance.
Trustees of settlor-interested trusts should use only the new version,
imprint HMRC 10/06, to record discretionary payments to beneficiaries other than
the settlor for the year 2006-07.
The new form will be available from the internet. Customers without web
access can obtain a copy of the form from their usual Trusts office from April.
In Finance Act 2006 there were changes to the way discretionary payments from
settlor-interested trusts are taxed. If the trustees of such a trust make a
payment to a beneficiary other than the settlor, the beneficiary is treated as
having paid tax at 40%, but this notional tax credit is not repayable. Box 7.3A
is used to record this type of payment. Discretionary payments from non-settlor-interested
trusts are not affected.
About the Author
© Crown Copyright 2007.
A licence is need to reproduce this article and has been republished for
educational / informational purposes only. Article reproduced by permission of
HM Revenue & Customs under the terms of a Click-Use Licence. Tax briefs are
updated regularly and may be out of date at time of reading.
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2007-03-09 17:15:43 in Tax Articles