Reporting Trust Income and Gains to HMRC
You need to use a trust and estate Self Assessment tax return to report the income and gains after the end of each tax year.
But, you have a choice of using (either):
- Commercial software (to send it electronically by January 31st).
- The paper version (form SA900) and posting it to HMRC three months earlier (by October 31st).
Note: Another guide explains how to get help with Self Assessment tax returns (e.g. from an accountant or from HM Revenue and Customs).
Submitting Your Tax Returns
HM Revenue and Customs (HMRC) will send you a notification about the amount you owe after you send in your tax return. It is important to pay your Self Assessment tax bill before the deadline to avoid penalties.
Statement of Income from Trust
The trustee(s) must provide a statement (e.g. using form R185) showing the amount of income and tax paid by the trust (if the beneficiary requests it) and give the information to all beneficiaries.
You should use form R185 (Settlor) to notify the settlor about income arising from the trust in which they ‘retain an interest’.
Important: HMRC guidance about trust record keeping for tax purposes explains more about which documents you need to collect and keep (e.g. bank statements).
Making Death Benefit Payments from Pension Schemes
There might be situations where you need to give extra information to the beneficiary (within thirty days), such as when (both):
- A payment funded by a taxable lump sum from a pension scheme is made.
- The pension holder has passed away.
Note: Another section has information about when and how to pay tax if you get money from someone’s pension pot after they die.
Extra Responsibilities for Trustees
Other responsibilities that a trustee needs to carry out will depend on what type of trust you are managing and any relevant instructions noted in the trust deed. As a rule, it will include:
- Completing form IHT100 if the trust needs to pay Inheritance Tax.
- Using the online service to update details about the trust at HM Revenue and Customs (HMRC).
Related Help Guides
- How are trusts taxed and where can you get help?
- Trusts and Inheritance Tax (IHT) after death.
- When might Capital Gains Tax be payable from a trust?
Note: Another section explains when you must register a trust with HM Revenue and Customs (HMRC) and the deadlines for registering.