Trusts with no income – Annual SA Returns – Working Together
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At the end of last year (2001) members reported that letters had been issued by Inland Revenue Trusts, suggesting that annual returns would continue to be issued for trusts with no income where the settlor had retained an interest.This was despite a Working Together statement which indicated that no returns were necessary. Inland Revenue Trusts have now confirmed that these letters were issued in error and that their practice at TSM 1405 (Trust Manual) applies whether or not the settlor retains an interest in the trust. Inland Revenue Trusts has apologized for any inconvenience the letters may have caused and confirmed that clarification has been issued to all trust offices.
If members continue to experience any difficulties with this matter please refer to Liz Lathwood.