Trusts – tax pool calculator
HMRC have added a new page to their website to act as a repository for trust updates and inheritance tax and trust newsletters. The new page can be found atwww.hmrc.gov.uk/trusts/agents/news-index.htm
The page includes a link to the tax pool calculator which has been updated to include the new tax rates introduced on 6 April 2010. The calculator is intended to calculate a discretionary trust’s available tax pool or where entering estimates, to calculate a discretionary trust’s likely value by the end of the year. The calculator can also be used for the 2008-9 and 2009-10 tax years.
The calculator is intended for guidance purposes only and the actual figures still need to be entered on the ‘Trust and Estate Tax Return’.
The calculator cannot be used in the following situations:
- discretionary trusts with deemed, trade or foreign income
- discretionary trusts that are settlor-interested trusts
- any non-discretionary trusts
- any settlor-interested element of a discretionary trust
- cases where vulnerable beneficiary relief has been claimed
- tax years earlier than 2008-09