Trust tax disclosure changes: What advisers need to know

Andrew Ryan

At the start of this year the Trusts Act 2019 came into force, in the words of the Ministry of Justice, “widening the current level of responsibility” for trustees.

But now the levels of responsibility are set to increase further with the introduction of additional tax information disclosure requirements.

Taking effect from the 2021-22 income year, trustees will need to provide Inland Revenue (IRD) with additional financial and non-financial information relating to a trust and its activities.

These new rules are specifically intended to equip IRD with the information it needs to monitor compliance with the new 39% personal tax rate.