Most of us are used to paying tax through our salary or perhaps carrying out self-assessment. But if you find yourself responsible for reporting and paying tax on an estate or trust, you might be on unfamiliar ground. How is a trust or estate taxed? What do you need to report, and how? What forms do you need to fill in, what are the deadlines – and what happens if you’re late?
Trusts and estates may be liable for income tax, capital gains tax or inheritance tax. Inheritance tax is paid by the person legally responsible for dealing with the estate of someone who has died, known as the executor. Different types of trust are taxed differently, and responsibility for reporting and paying tax could sit with either the trustee or the beneficiary.
If you’re the executor of a will, or a trustee or a beneficiary of a trust, our team of legal experts can give you guidance on your tax responsibilities. We’ll help you understand how the law relates to wills and trusts, what you need to report and on which forms. But we won’t be able to calculate how much tax you owe for you.
All advice contained within this section relates to England and Wales only.