The Association of Tax Technicians (ATT) has responded to HMRC’s review of the taxation of trusts by calling for a reduction of burdens on smaller, family trusts.
ATT highlights that family trusts are often set up to protect assets and provide for children and other vulnerable family members, rather than tax avoidance.
Jon Stride of ATT’s Technical Steering Group said that such setting up a family trust “often has little or nothing to do with tax planning”. He further commented that ATT “are concerned that families will be discouraged from using trusts where they are appropriate because of fears that privacy over trust assets could be lost if further legislation is enacted”.
The EU Fifth Anti-Money Laundering Directive, if enacted in the UK, will require all UK trusts to be registered whether or not they have a tax liability and anyone with a legitimate interest will be able to view the register. Currently only trusts with a tax liability need register.
ATT would like to see improvements to the UK Trust Register to ensure that trustees do not incur disproportionate administrative costs in complying with regulatory requirements.
Are you a settlor or trustee of a family trust and unsure about your obligations? Call Anna on 01865 255637 for an informal, no obligation conversation about how she can help.