TSEM3165 - Trust income: resident trustees with trust income from abroad: beneficiary is resident but not domiciled
These instructions apply only if the beneficiary has an absolute interest in trust income (TSEM6204). This includes a life tenant and an annuitant.Ìý
As a result of the abolition of the remittance basis, the income tax position of trustees and beneficiaries as set out in this guidance will change from 6 April 2025.ÌýÌý
Position to 5 April 2025Ìý
UK resident trustees바카라 사이트™ income tax liability is based on the beneficiary바카라 사이트™s domicile. The beneficiary must make a claim for any year that the remittance basis is to apply.Ìý
If in any year before 2025-2026Ìýthe beneficiary claims the remittance basis the trustees바카라 사이트™ liability on the share of income from abroad payable to the beneficiary is limited to the amount remitted to the United Kingdom. Trustees exclude from the Trust and Estate Tax Return any such overseas income that is not remitted to the UK.Ìý
If in any year before 2025-2026Ìýthe beneficiary does not claim the remittance basis the trustees are assessable on the amount arising.Ìý
Position from 6 April 2025Ìý
UK resident trustees are liable to income tax on their worldwide income, including any foreign incomeÌýand should return this in their Trust and Estate Tax ReturnÌý(irrespective of whether a beneficiary makes a claim under the 4-year FIG regime or uses the temporary repatriation facilityÌý(TRF)).ÌýÌý
It is possible that a beneficiary may be able to access the 4-year FIG regimeÌý[RM40000]Ìýif they have become resident in the UK for the first time, or if they have returned to the UK after a period of 10 consecutive tax years of non-UK residence. This only applies to income and gains arising after 6 April 2025.ÌýÌý
A beneficiary who is a former remittance basis user with unremitted foreign income and gains may be able to use the TRF see RDRM71000.Ìý
Tax CaseÌý
Williams v Singer & others 7 TC 387Ìý