Trusts and estates – new SA905 form
A new in-year cessation return for 2010-11 self assessment trust and estate returns has been published by HMRC. The (draft) SA905 form should be used to declare capital gains when filing a trust and estate tax return.
The form should be submitted with the SA900 (Trust and Estate main return) together with any other required supplementary pages for in-year cessation cases. The SA905 is available on request in draft form. The final version of the form together will full notes will not be available until April 2011.
The new form is necessary to take account of the changes announced in the June Budget where the rate at which trustees and personal representatives are charged to tax on gains accruing on or after 23 June 2010 increased to 28 per cent. The qualifying limits for Entrepreneurs’ Relief were also increased to £5m from the same date.
The draft SA905 form includes new boxes to take account of the changes as follows:
- box 5.11 – for all taxable gains accruing between 6 April and 22 June 2010
- box 5.11A – for taxable gains accruing on or after 23 June 2010 which qualify for Entrepreneurs’ Relief
- box 5.11B – for all other taxable gains accruing on or after 23 June 2010
- boxes below box 5.22 – for amounts of qualifying gains both before and on or after 23 June 2010 on which Entrepreneurs’ Relief is claimed