How do you wind up an Acc & Main Trust?

by **fredpeck** on Sat Mar 05, 2011 11:41 am

A brief history:

A & M Trust set up by my wife's father about 20 years ago to benefit his grandchildren. He died 12 years ago. My wife and her brother are the Trustees.

The proceeds have been spent on education and general expenses for the boys.

They are all now finished education and the bulk of what was left of the capital has been distributed to them.

Self assessment completed every year and up to date with Income Tax and CGT.

What is the correct procedure to wind up the Trust? Can we simply write a letter to that effect and keep it on file and then inform HMRC on the next SA? Or is there some "official" way of doing it.

Any help gratefully accepted. Many thanks.

by **maths** on Sat Mar 05, 2011 5:32 pm

Per HMRC:

Reporting winding up to HMRC
If a trust is wound up, the trustees must notify their local HMRC Trust Office and complete a tax return for the period up until the date the trust is wound up. ........Remember that there may be tax due for the period before the winding up and the ending of the trust may mean a liability for Capital Gains Tax.

by **fredpeck** on Mon Mar 07, 2011 12:55 am

Thanks. HMRC will be informed.
But the actual act of winding up - do the Trustees simply add a note to the Trust document to say that it was wound up on a certain date?
Is it that simple?