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A settlement includes a trust, covenant, disposition, arrangement or transfer of assets. If funds have been provided directly or indirectly for the settlement, it's income may be taxable in the hands of the client.
The income may be taxable if:
the client or spouse can benefit immediately or in the future from the capital or income of the settlement; or
capital or income from the settlement is paid to, or for the benefit of, the client's unmarried child or stepchild while the child is under the age of 18; or
the settlement is a covenant for payments to charity (where the covenant is for less than three years duration); or
the client or spouse have received a loan or repayment of a loan from the trustees of the settlement.
Enter details of the trust fund on the provider record:
Trust fund name - enter the description of the settlement, this information will not appear on the tax return.
Dates - these fields may be left blank, enter the date entitlement ended to prevent the record being brought forward to the following tax year.
Enter details of income received on the income record:
Net income received - enter the income received net of tax
Rate of tax - choose from Basic rate, Savings rate or Dividends rate
Tax deducted at source - IRIS will automatically calculate the tax deducted figure
Gross income - IRIS will automatically complete the gross income field based upon the net and tax amounts
Date income received - this field may be left blank, if completed ensure the date used falls within the current tax year
