Trust Distributions - What Accountants Need to Check Before the Trustees Pay

Introduction

Distributions from discretionary trusts can have unexpected tax consequences for trustees and beneficiaries. What appears to be a straightforward payment may require consideration of the trust deed, the nature of the funds being distributed, the available tax pool and the information that must be provided to the beneficiary.

Accountants are often asked to calculate or report a distribution after the trustees have already made their decision. By that point, opportunities may have been lost and errors can be difficult to correct.

Drawing on practical experience, this new virtual classroom seminar will explain the checks accountants should make before a distribution takes place and the compliance work required afterwards.

What You Will Learn

This live and interactive session will cover the following:

• Establishing whether a proposed payment represents income, accumulated income or capital
• Understanding the accountant’s role and when the trust deed or legal advice is required
• Checking whether the tax pool can support the proposed distribution
• Grossing up discretionary income payments
• Tax-pool charges and their interaction with payments on account
• Completing form R185 correctly
• Distributions in specie and the additional tax issues they create
• Maintaining appropriate calculations and supporting records
• Correcting payments or certificates that have been processed incorrectly
• Practical examples of distributions that did not produce the outcome the trustees expected

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.