Charges on Trusts could be simplified

HMRC has published proposals to simplify the charges associated with Trusts. Currently there are charges payable at 10-yearly intervals, known as periodic charges, as well as charges on releasing assets from a Trust, known as exit charges.

At the moment Trustees have the difficult task of establishing the historic value of assets put into the Trust, the historic value of chargeable transfers that were made in the seven years prior to the Trust being set up, as well as the current value of relevant assets within the Trust as well as the dates on which any additions were made.

Under HMRC’s latest proposals the need to obtain and retain historic records would be removed as the settlor’s previous lifetime transfers would be ignored, as would the need to take into account any non-relevant property.

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Blog by Jaskarn Pawar

Jaskarn Pawar is an experienced and award winning Chartered and Certified Financial Planner. He advises people all over the UK on financial planning and wealth management issues to help them reach solutions to fit their personal needs. You can contact Jaskarn on 01604 211234 or by e-mail on