IIP Trust Mandated Income.

[Parky1]

If income passes straight to the beneficiaries, the Trust is not taxable (but the beneficiary is). However, this is impossible in the case of dividend income from shares held in an online broker's account, as they will only make payment to the Trust's bank account. This article from 2017 covers HMRC's ruling on the matter- https://www.tax.org.uk/policy-technical/technical-news/mandated-trust-income-–-interest-possession-trust-–-trust-tax-return . HMRC did say, at the end of their ruling that "The term ‘mandated’ has been causing the confusion so we are in the process of amending our guidance to clarify this matter.”
I can't find anything after that date to indicate that they have "clarified" the issue, and wonder if anyone has any more up-to-date information, or if there is a way round this ruling which would allow the beneficiaries to be responsible for paying the tax?

[maths]

I can't recall any further updates; hence, trustees are taxable and need to complete a return where monies pass through their account and are not paid directly to life tenant.

[Parky1]

Thanks, maths, that's what I suspected. I guess HMRC have other things on their mind at the moment, and the long-awaited "simplification" of IHT and Trusts taxation is still a long way off.