Tax support for trust and fiduciary service providers

Technical analysis on matters that come up irregularly: the inheritance tax charges on a settlement, the capital gains tax effect of distributions or appointments, the residence of trustees, beneficiary taxation, and responses to HMRC. We provide a specialist resource so your team can resolve these with confidence.

No. We provide tax advice, not trustee or administration services. You remain responsible for the trust and its administration. We support your trustees with analysis and, where you wish, with HMRC correspondence, so there is no overlap with the fiduciary services you provide.

There can be a lifetime entry charge of up to 20% on value above the available nil-rate band, a periodic charge of up to 6% on each ten-year anniversary and exit charges when property leaves the trust. Rates depend on the trust's value and history. We model the charges so trustees can plan and provide for them.

Trustees pay income tax at trust rates, and capital gains tax at 24% with an annual exempt amount of £1,500 for most trusts. Beneficiaries can have their own tax on distributions and may be entitled to credits. We help trustees work out the right treatment for each type of trust and distribution.

Yes. Residence of trustees, the settlor's status and beneficiaries' residence all affect UK tax. Since inheritance tax became residence-based on 6 April 2025, the settlor's long-term resident status matters more. We map the position and coordinate with overseas trustees and advisers.

For trusts, the settlor's status at the time of a charge now matters. If the settlor is a long-term UK resident, non-UK assets can be within the UK inheritance tax regime, and a tail applies after leaving. Trustees of older offshore structures should review their position rather than assume past treatment applies.

Yes. Older trusts can contain features that no longer work well, such as outdated tax assumptions, unfiled returns or strategies that HMRC now challenges. We review the structure and its history, flag risks and suggest whether to retain, restructure or wind up, with the tax cost of each option.

We identify the tax cost to the trust and the beneficiary of each option, including exit charges, capital gains tax on assets appointed out, and the income tax position of the recipient. This helps trustees exercise their discretion on an informed basis and document the reasons.

We can advise on whether a trust is required to register and what must be reported, and help respond to HMRC queries. Many trustees prefer to keep routine filing in-house or with the client's accountant, and we avoid duplicating that, but we can support on technical points.

Yes. We can handle correspondence with HMRC as agent or support your team behind the scenes. Trust enquiries often involve valuation, residence or the characterisation of a transaction, so we start by clarifying what HMRC is asking before any response is sent.

We map the tax cost of each route: distributing assets in specie, selling assets, or appointing to a new trust. We look at exit charges, capital gains tax and the position of beneficiaries, then suggest an order of steps that minimises tax and meets the trust deed.

Yes. Some families use both, for example a trust holding shares in a Family Investment Company. The tax result depends on how the shares and rights are divided. We have set up 50+ Family Investment Companies and advise on how they sit with trust structures.

We expect to meet your requirements. We can supply information for your onboarding and checks, and we follow the confidentiality terms you need. Because our work is tax advice rather than trust administration, conflicts are rare, but we check each matter before we start.

If you work with lay trustees, we can explain tax in plain terms and help them meet their duties. Trustees carry personal responsibility for tax compliance, so having clear technical advice on the major decisions is worthwhile. We can work through you or directly with the trustees.

We can help with the tax aspects of charitable giving by individuals, trusts and companies, including the inheritance tax position of gifts to charity and the 36% reduced rate. Charity law and regulatory matters remain with specialist charity lawyers, and we work alongside them.