annual accounts for discretionary trusts

[colinefbarrett]

Hi there, quick question that I hope someone will know the answer to.

If a discretionary trust generates income considerably below the threshold at which tax becomes payable (say £10 - £20 a year), then what happens in terms of the Trustees obligations to produce annual accounts. Do they:
(a) still have to produce full accounts
(b) have to file some sort of shortened return
(c) not have to file any accounts as the amount of income is below the threshold.

Really grateful for any help.

thanks
Colin

[Lee Young]

When you say file "accounts", do you really mean, tax returns. In which case the Revenue will confirm to you whether or not returns need to be submitted. If all incime is taxed at source then only periodic, rather than annual, returns will most likely be needed.

As regards accounts, there is no statutory requirement to prepare them.