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Where Taxpayers and Advisers Meet

Trust fund fee's

Rebecca17
Posts: 1
Joined: Thu Aug 09, 2018 4:48 pm

Trust fund fee's

Postby Rebecca17 » Thu Aug 09, 2018 4:56 pm

Are there any implications (ie Tax or other) in receiving an interest free or interest payable loan from a trust fund in New Zealand that I am a beneficiary of?

maths
Posts: 7340
Joined: Wed Aug 06, 2008 3:25 pm

Re: Trust fund fee's

Postby maths » Fri Aug 10, 2018 12:04 am

Who set up the trust?
What is the domicile and residence status of this person?
What is your domicile and residence status?
What sort of trust is it?

AGoodman
Posts: 383
Joined: Fri May 16, 2014 3:47 pm

Re: Trust fund fee's

Postby AGoodman » Mon Aug 13, 2018 12:26 pm

Yes - if you are UK tax resident, you are potentially liable to income and/or capital gains tax on income and gains that have arisen (or arise in future) in the trust.

You can avoid this by paying interest of at least the HMRC official rate (currently 2.5% but may rise shortly).

Paying more than a commercial rate can also (in some circumstances) also cause problems for you and the trust because you can be treated as a settlor. The tax analysis gets complicated quickly.


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