HMRC has confirmed that the concession for trusts in receipt of small amounts of interest income has been extended until at least 5 April 2021.
Under the arrangement, trustees and personal representatives ("PRs") are not required to submit tax returns or make payments under informal arrangements where the only source of income is savings interest and the tax liability is less than £100.
Why was the concession introduced?
From 6 April 2016, banks and building societies stopped withholding income tax on interest paid to individuals and trusts.
Whilst individuals were awarded with a “Personal Savings Allowance” enabling them to earn up to £1,000 interest tax free, this allowance was not extended to trusts. Therefore, trusts...
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