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Tips for completing the Trust and Estate Tax Return

The following tips provide a step-by-step guide through some of the key sticking points on the Trust and Estate Tax Return - form SA900. They are useful whether you're doing a paper or online return.

Do you need to complete the whole return?

You don’t need to complete the Trust and Estate Tax Return in full if any of the statements at Step 1 on page 2 of the return applies to you.

If a statement does apply, show a tick in the appropriate box. Unless you’re the trustee of a charitable trust, you can then skip to questions 19, 20 and 21, which cover contact details and other practical information. You must then complete the declaration at question 22.

Question 23

Question 23, which appears between questions 7 and 8, is only relevant for personal representatives. If you’re a trustee you can ignore this question.

Question 8

You must complete this in full by answering Yes or No to each question. If not, HM Revenue & Customs (HMRC) might send the return back to you to complete.

There has been a change to the form. Boxes 8.17 and 8.18 - about whether or not a vulnerable beneficiary election has been made - have been added. If you were used to the old return, make sure you complete the correct boxes.

Question 9

If you have an interest in possession trust and some of the income has been taxed at source, you need to tick Yes. You don’t need to complete boxes 9.1 to 9.40 for this income. Remember, gross income still needs to be entered at question 9.

You may still need to complete questions 9.1 to 9.40 if the tax credits attached to the income arising are needed for calculations later in the return. For example, to work out if 80 per cent of the income has tax deducted at source for future payments on account.

Box 9.6

Interest distributions can be received untaxed or with 20 per cent tax deducted. Make sure you enter the correct figure and that the corresponding figures on this row are correct.

Boxes 9.15 to 9.23

Remember to include the 10 per cent tax credit/notional tax in boxes 9.16, 9.19 and 9.22. You also include this amount in totals at boxes 9.17, 9.20 and 9.23.

Question 9A

You must include the amount of standard rate band unless:

• there is no income on the return or supplementary pages (ignoring capital gains)
• none of the income is chargeable at the special trust rates (42.5 per cent for dividends or 50 per cent for all other income)
• you have an interest in possession trust and there are no entries in boxes 9.29 to 9.31, 9.37A to 9.40, or 3.22 of the Land and Property supplementary pages
• you have an interest in possession trust and there are no entries in box 4.4 of the Foreign Income supplementary pages - the trust rate applies to any foreign chargeable premiums
  

The full amount of standard rate band available is £1,000. If the settlor has set up two or more trusts, this must be divided equally between them - up to a minimum of £200 per trust.

You can read more about the standard rate band by following the link below.

• Tax on different kinds of trust income

Question 12

If you’re completing the Trust and Estate Tax Return for a new trust and details of all the original assets settled have already been shown on form 41G (Trust), then you don't need to complete question 12.

Question 13

For all boxes in question 13 show income as gross and expenses as net.

Question 14 & Box 14.15

Show net payments made to beneficiaries (that is the actual amount paid out) and include any tax pool brought forward from last year at box 14.15. If HMRC sent you a tax calculation you'll find this on the summary page.

• Tax pool and help with tax pool calculations

Question 18

Only tick Yes if you want a repayment to be made. Don't answer this question if you want any credit to be offset against a future liability. Remember, the trustee must provide a signature in order to give authority for the repayment to be made to anyone else.

Question 20

Tick yes if there are any changes to trustees’ details, even if you've amended the address on the front of the return. Confirm who is to be the principal acting trustee.

If you’re completing a paper return

Avoid common mistakes

You can avoid making common mistakes by doing the following:

• write clearly using blue or black ink and only in the spaces provided
• don't include notes on the return like 'per accounts' or 'information to follow'
• when you're asked for amounts only use numbers (for example, use the figure 9, not the word ‘nine’)
• don't include pence – round down income and gains, round up tax credits and tax deductions
• make sure you sign and date the return
• check that you've completed and included any supplementary pages needed
• read through form SA950 – guidance notes for completing the Trust and Estate Tax Return
  

• The Trust and Estate Tax Return, guidance notes and supplementary pages Opens new window

Use the return with the correct barcode

Your Trust and Estate Tax Return has a bar code that matches your ten-digit unique taxpayer reference (UTR). You must ensure that you use the correct return.

Don't use someone else’s return, as your return could be logged against the wrong UTR. If you want to send a paper return and can't find the one that you were sent, you can get one online from HMRC.

• The Trust and Estate Tax Return, guidance notes and supplementary pages Opens new window

Supplementary pages

Questions 1 to 7 on the tax return are about supplementary pages. If you’re using any supplementary pages, remember to tick these boxes and those at question 22, as they let HMRC know if anything has not been included with your tax return.

• The Trust and Estate Tax Return, guidance notes and supplementary pages Opens new window

More useful links

• Tax return corrections and refunds

• How to fill in the Trust and Estate Tax Return

Useful contacts

• HMRC Trusts & Estates