August 2018 Tax Update

 In Gill's Blog, Tax

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We welcome the next instalment of HMRC Trusts & Estates Newsletter for August 2018 which covers:

The annual refresh of Agents Toolkits including ones for Trusts & Estates tax return and the IHT 400.

The DOTAS guidance on the IHT hallmark has now been incorporated in the DOTAS manual.

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Professional valuations need only be separately sought if you think an individual item may be worth more than £1,500 (an increase from £500) or where the value cannot be reasonably estimated.

IHT timeline – published in the April 2018 special edition – applies for applications processed by HMRC from 16 April 2018 and the 10 working days to process the IHT 421 relates only to the time between when the account or payment is received by HMRC and when they issue the IHT 421 and does not include postage times which can increase the time by 5 – 10 working days!

IHT 436 (RNRB) – problems with its interactivity have been resolved.

TRS – please call the Trusts & Estates Helpline 0300 123 1072 if you are still experiencing difficulty in obtaining an Agent Services Account. Remember the deadlines for 2017/18 registrations is fast approaching – 5 October following the end of the tax year. The newsletter confirms that pension scheme trusts are exempted from registration. It also confirms that the software to update entries on the register is still not operational so changes of trustee or their agents should be sent by post to Trusts, HM Revenue & Customs BX9 1EL.

EU 5th AML – became EU law on 10 July 2018 and brings in enhanced transparency including requiring ALL trusts in UK to be registered. We have 18 months to bring this into domestic law.

CRS – Trusts who need to report under CRS or FATCA can do so without a UTR but they do need to set up a Government Gateway account as an organisation.

The saga of when is an estate subject to the Informal procedures for dealing with tax or is regarded as a complex estate which needs to be registered rumbles on. The newsletter clarifies the position:

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