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Where Taxpayers and Advisers Meet

VAT and Legal/Accountancy Services to Trustees

SP11
Posts:8
Joined:Thu Apr 06, 2023 5:47 pm
VAT and Legal/Accountancy Services to Trustees

Postby SP11 » Tue Jul 16, 2024 5:38 pm

Trust administered in the UK with one UK professional Trustee and one American Trustee who is the client and principal Trustee.

Services supplied are of a general administrative nature and relate to legal/accountancy work.

Place of supply defaults to where customer is based given it's B2C as per VAT Notice 741A but is that the Principal Trustee in this case and therefore no VAT?

pawncob
Posts:5154
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: VAT and Legal/Accountancy Services to Trustees

Postby pawncob » Tue Jul 16, 2024 8:09 pm

Where is the Trust registered? You're working for the Trust not the trustees.
With a pinch of salt take what I say, but don't exceed your RDA

SP11
Posts:8
Joined:Thu Apr 06, 2023 5:47 pm

Re: VAT and Legal/Accountancy Services to Trustees

Postby SP11 » Wed Jul 17, 2024 8:55 am

@pawncob couldn't work out how to directly reply so I tagged you instead.

That's what is confusing me but reading below seems to be in line with your thinking. To answer your question the trust has its assets invested in the UK and not anywhere else but it could be argued that the US Trustee makes all relevant decisions including to engage the law firm providing the services who incidentally to that engagement are listed as (if they decided to move to another advisor the trustee company would step down as Trustee).

https://www.gov.uk/hmrc-internal-manuals/vat-registration-manual/vatreg12800

"Even where trustees simply act as custodians they remain a separate entity for VAT purposes and are potentially capable of making and receiving taxable supplies." specifically. The trust would therefore appear to be a separate entity for VAT purposes and as the Trust Deed and Assets are in the UK then VAT should be charged. My head hurts with this one.

SP11
Posts:8
Joined:Thu Apr 06, 2023 5:47 pm

Re: VAT and Legal/Accountancy Services to Trustees

Postby SP11 » Wed Jul 17, 2024 8:58 am

Also this seems relevant https://www.gov.uk/hmrc-internal-manuals/vat-registration-manual/vatreg02100

pawncob
Posts:5154
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: VAT and Legal/Accountancy Services to Trustees

Postby pawncob » Wed Jul 17, 2024 11:10 am

Are you acting for the American Trustee or the Trust itself? Your first sentence doesn't make it clear.
With a pinch of salt take what I say, but don't exceed your RDA

SP11
Posts:8
Joined:Thu Apr 06, 2023 5:47 pm

Re: VAT and Legal/Accountancy Services to Trustees

Postby SP11 » Fri Aug 09, 2024 8:39 am

Are you acting for the American Trustee or the Trust itself? Your first sentence doesn't make it clear.
Sorry for the delay in replying, not sure if there are notifications on this forum or not but would be handy!

We are engaged to act for the Trust in that we have Terms in place signed by both Trustees. There are no other advisors involved.

SP11
Posts:8
Joined:Thu Apr 06, 2023 5:47 pm

Re: VAT and Legal/Accountancy Services to Trustees

Postby SP11 » Fri Aug 09, 2024 8:42 am

Edit: I have now found the notification settings.

pawncob
Posts:5154
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: VAT and Legal/Accountancy Services to Trustees

Postby pawncob » Fri Aug 09, 2024 10:58 am

If the Trust is UK registered then VAT applies.
With a pinch of salt take what I say, but don't exceed your RDA

SP11
Posts:8
Joined:Thu Apr 06, 2023 5:47 pm

Re: VAT and Legal/Accountancy Services to Trustees

Postby SP11 » Fri Aug 09, 2024 11:07 am

If the Trust is UK registered then VAT applies.
Thank you and noted for the future as I anticipate this to come up fairly frequently.


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