When managing the income and gains of a trust, trustees must comply with HMRC’s self‑assessment regime. This usually means completing the SA900 Trust & Estate Tax Return, including any relevant supplemental pages for trading, property income, capital gains, and more.
As a trustee, maintaining compliance of the trust with HMRC is very important, but it can be complex and time consuming, so we can support you with this.
At Stratos, our experienced team specialises in preparing and filing Trust and Estate tax returns.
We will:
- Calculate the tax liability for the trust accurately.
- Prepare and submit the SA900 return and all required supplementary pages.
- Review the trust’s tax position to identify planning opportunities for the future.
Do I need to complete a Trusts and Estates Tax Return?
In most cases, trustees are required to file a return. There are only limited circumstances where a Trusts and Estates tax return is not required, such as when the trust is a bare trust or its annual income falls below £500.
The tax owed by the Trust is calculated on income streams:
- Dividends
- Interest
- Rental Income
- Capital gains
All these forms of income must be reported on a SA900 and the tax owed must be paid from funds held within the Trust.
Filing Dates
Online filing: 31 January following the end of the tax year (same as personal Self‑Assessment).
Paper filing: 31 October following the end of the tax year.
HMRC does not provide software for online filing of the return. Trustees must use commercial software to submit the return digitally or engage a tax advisor to support with the trust’s compliance.
Beneficiary reporting & certificates
Trustees should issue R185 (Trust Income) certificates to beneficiaries for distributions, so beneficiaries can correctly complete their personal returns.
At Stratos we can support you with the preparation of the SA900 and R185 certificates.
Trust Registration Service
The Trust Registration Service (TRS) is HMRC’s online register of trusts, designed to improve transparency and prevent misuse. It acts as a central hub for recording the beneficial ownership of trusts, including details of settlors, trustees, and beneficiaries. By maintaining accurate records, HMRC ensures up‑to‑date ownership and tax information for regulatory compliance.
Who must register?
All UK express trusts, unless specifically exempt (e.g. bare trusts, certain will trusts, pension or charitable trusts).
Non‑UK trusts with UK connections, such as UK property or UK‑based trustees.
Filing requirements for TRS:
- Report changes within 90 days of any update (e.g., new trustee, beneficiary, or assets).
- Annual confirmation for taxable trusts must be submitted by 31 January each year.
- Failure to comply can result in significant HMRC penalties.
Inheritance Tax (IHT) considerations
Most relevant property trusts (e.g., discretionary trusts, post‑2006 interest‑in‑possession trusts, accumulation & maintenance trusts) are subject to a 10‑year charge. These rules do not apply to:
- Bare trusts
- Disabled person’s trusts
- Qualifying interest‑in‑possession trusts created before 2006
- Will trusts within two years of death
- 18–25 trusts
The charge is levied on each 10‑year anniversary of the trust, calculated on the value of “relevant property” owned by the trust on the day before the anniversary. The charge must be reported and paid within 6 months of the end of the month in which the 10-year anniversary falls.
Separately, Exit Charges can also apply when assets leave the trust between 10-year anniversaries (e.g. distributions to beneficiaries). These charges must also be reported to HMRC within 6 months.
At Stratos we will support you with your IHT compliance. Our team will:
- Calculate periodic and exit charges accurately
- Prepare and submit all required HMRC forms
- Maintain trust records and monitor key dates to avoid penalties
- Advise on planning opportunities to minimise future charges
Why Stratos?
Completing a Trusts and Estates return is generally more complex than completing a standard Self-Assessment return – especially if there have been various different sources of income or capital gains. Putting your trust in us allows us to reduce the administrative burden for trustees as well as providing peace of mind that the Trust has remained fully tax compliant.
By working with us at Stratos, you can reduce the administrative burden and gain peace of mind knowing your trust remains fully compliant. We don’t just prepare and submit the return on your behalf, we take a holistic approach. Our team reviews the trust’s overall tax position each year, identifies planning opportunities, and helps you make informed decisions to mitigate tax liabilities in the future.
With our expertise, you can be confident that your trust is managed efficiently, accurately, and with a forward-thinking strategy.
Do you need to register for Self Assessment?
