A&M trust accountancy fees

[fax machine]

Can a tax deduction be obtained for professional accountancy fees for an A&M trust?

The trust has two properties - one a holiday let, the other a furnished let.

A tax return has to be prepared; will a tax deduction be available for professional accountancy fees incurred in drawing up the accounts and filing and agreeing the trust's tax return?

Many thanks.

[Lee Young]

Although its an A&M trust, is there an interest in possession or is it still discretionary in nature. The difference is crucial - reasonable trust management expenses are allowble for discretonary trusts (to reduce the tax liability) though not for interest in possession trusts.

The Revenue has recently pontificated large on tmes.

[fax machine]

The trust has two properties which are rented out (one Schedule A, the other a holiday let). There has never been any distribution to the beneficiaries - they struggle to make any cash. Does that make them discretionary?

Would it make a difference if one of the beneficiaries were to live in one of the properties.

[Lee Young]

what makes them discretionary is what the trust deed says, not necessarily what the trustees do, which may of course be incorrect.