Easing the Burden of UK Tax Compliance for Trusts - new CCH Service

LONDON, April 30, 2013 /PRNewswire/ --

Financial professionals contending with the increasingly burdensome UK tax regime for trusts can now draw on a new, tailored support service.

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Launched by the tax and accountancy information business, CCH (http://www.cch.co.uk) - part of global information services company, Wolters Kluwer - the service is designed to help practitioners navigate the tax compliance rules that have become extremely complicated for some trusts.

Even what were previously simple trusts can be caught by inheritance tax charges on property as a result of changes in recent years, says Kevin Lloyd James, CCH Tax Consultant.

"HMRC has made trusts less attractive as a pure tax planning tool," Kevin explains. "Over recent years this attack has forced practitioners to take account of a wider range of issues when dealing with their trust clients."

These range from tax pools, beneficiary status and income availability, to trustees' management expenses, capital gains tax rates and restricted annual exemptions.

"Some trustees are now finding that they have to consider inheritance tax charges that were not relevant when their trust was conceived," Kevin adds. "And even where trusts were designed to fit within the relevant property regime, we know that many practitioners find that the forms and calculations are unfamiliar and complex."

Practitioners can choose from different levels of support appropriate for their trust clients. Broadly, these are:

• A review of the trust Deed and any subsequent Deeds of Appointment followed by guidance on the basic compliance requirements. Understanding why the rate of tax payable can change from basic rate to trust rate, and vice versa, is a key element.
• Advice on inheritance tax and how to deal with chargeable events, including checking calculations, and reviewing and completing returns.
• A visit to brief staff on trust matters and review trust files for potential tax planning opportunities.
• Assistance in trust planning, including the tax issues to be considered when using new trusts and when breaking up or continuing existing trusts.

Notes to Editors

CCH, a Wolters Kluwer business, is the leading global provider of tax, accountancy and audit information, software and services. It has served tax, accountancy and business professionals since 1913. In the UK CCH provides books and online information, software, magazines, professional development and fee protection.

Wolters Kluwer is a market-leading global information services company with annual revenues (2012) of €3.6 billion and maintains operations in over 40 countries across Europe, North America, Asia Pacific and Latin America. Wolters Kluwer is headquartered in Alphen aan den Rijn, the Netherlands. Its shares are quoted on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices.

Follow CCH UK and Wolters Kluwer UK on Twitter: @CCHVoice @WoltersKluwerUK

For more information on this new CCH trust support service, e-mail taxadvice@wolterskluwer.co.uk or telephone +44(0)844-561-8100.