UK Tax Support for Offshore Trusts

UK Tax Support for Offshore Trusts

STS (Europe) Limited has an established connection with offshore trusts companies, aiding trustees in relation to UK tax matters. These services provided to offshore trust companies currently include UK trust tax returns, ATED returns, as well as any ongoing HMRC enquiries.

Our full range of services for Offshore Trusts include:

  • UK tax Returns
  • Trust Accounts
  • Relevant Income and Capital Gains Pool Computations (see below)
  • Tax Planning
  • HMRC Disclosures
  • UK Tax Related Training

One area of interest for offshore trust companies is the computations for UK matching rules. As part of the administration of an offshore trust, it is essential that the relevant income pools and capital gains pools are quantified on an ongoing basis. In practice the pools may not be up to date, leaving trustees unaware of what they are distributing to their UK resident beneficiaries and resulting in potentially understated levels of income and capital gains on tax returns.

STS (Europe) Limited offer a computational based service, completing the calculations for bringing the relevant income pools and stockpiled capital gains pools up to date. The analysis is a technical and time-consuming process, taking away trust administrators from the tasks they are supposed to be doing.

By liaising with the trustees of any given trust, our team of experienced analysts will conduct a detailed analysis of the transactions throughout the life of the trust. The UK matching rules are then applied accordingly to provide trustees with accurate and current figures.

Going forward, it will enable trustees to make sound tax planning, such as making capital distributions to utilise any beneficiaries unused annual exemptions or create accounts enabling them to monitor the relevant income and capital gains on an ongoing basis.