Trusts & Charities

Tax planning for trusts and charities

Currently, trusts have rather fallen out of favour with governments of either hue, but there can still be benefits in holding assets via a trust, not least to provide some protection in the case of minors.

The partners at Dunne & Waterman have in depth experience of trust accounts, trust tax returns and tax planning via the use of trusts.

In many cases, the creation of a trust can lead to a charge to inheritance tax or capital gains tax, and it is important to understand the position prior to settling assets.

IHT for trusts

Once a trust is in existence, it is likely that it will be subject to inheritance tax charges every ten years ( the 'periodic' charge) and on assets leaving the trust (the 'proportionate' charge). Both necessitate the preparation of a tax return and the rules are complex. We are able to assist on all such matters and are happy to work closely with your solicitor where necessary.

Charities

We are also able to prepare accounts for charities, to audit charity accounts if the charity requires accounts to be audited either through its statutes or by law. It is commonly the case that the charity will wish to raise funds by trading. This can be a difficult area, and the use of a company is often recommended, but there can be corporation tax and VAT issues to grapple with. If you need advice in this area, please contact us.