Form 50(FS)

Q1

At least one trustee must be non-resident in the UK and the settler must be;

• non resident in the UK and

• not ordinarily resident in the UK, and

• not domiciled in the UK

Although the trustees may be treated as resident in the UK, they will be dual resident when the law of another country treats them as resident there, at the same time.

Go to the Non-Resident Questionnaire section and complete the relevant box to tick these boxes on the form.

Q2

If the trustees have invested in a non-resident unit trust that is controlled by five or fewer participators, then full details of the company’s or Unit Trust’s accounts must be provided.

If no accounts have been prepared then a statement showing all income arising in the year ended 5 April 2009 and a list of all assets held on that date must be provided.

Information entered here is taken from the Underlying Non-Resident company screen.

Q3

For the settlor charge to apply the settler has to have been:

• alive on 5 April 2009, and

• resident or ordinarily resident in the UK for at least part of the year ended 5 April 2009, and

• domiciled in the UK in that year

and at any time during the year the settler has an interest in the settlement.

If all criteria applies then a copies of the computations for the capital gains (or losses) were arising to the trustees, and any underlying companies reported.

Go to the Settlor Details screen and complete the relevant question to tick the box on the form.

Q4

If the trustees, or an underlying non-resident company of the trust, have disposed of a ‘material’ interest in an offshore fund and made a gain on disposal, you need to consider whether the gain was an offshore income gain or a capital gain.

The amount of any offshore income gains may be chargeable to income tax on the settlor and/or beneficiaries of the settlement.

This section will be completed automatically by IRIS if there is an entry in any of the following sections:

 Disposal of holdings in offshore funds

Offshore income gains within the Underlying Non-Resident Company section

Offshore income gains

The figure shown in this field is the total of the figures from the data entry screens as listed above.

Q5

Relevant income is the amount of unexpended income that has not already been paid over to, or treated as income of, an individual or otherwise spent by the trust or underlying foreign company.

Go to the Issue address and declaration section and enter a figure into the section stating Relevant income of the trustees of the settlement under S.740 ICTA '88.

Q6

Capital payments include:

• capital vesting absolutely

• any payment to a non-resident company controlled by a person resident in the UK

• any payment from a company controlled by the trustees alone or jointly with the settlor or persons connected with the settlor.

Benefits include loans, the transfer or user of assets and accommodation provided (on less than arm’s length terms).

This option is completed automatically by IRIS based in the information entered into the Capital Payments to Beneficiaries section and the Capital and Payments Received by Other Recipient section.

This section is completed automatically by IRIS using information entered into the data entry screens listed above.

Q7

Where assets have been transferred to the trustees of another settlement and this happened during the year ended 5 April 2009, the disposal of asset may give rise to a capital gain.

Go to the Issue address and declaration section and enter a figure into the section stating Relevant income of the trustees of the settlement under S.740 ICTA '88.

Q8

For years up to and including the year ended 5 April 2008, this matching is done on a ‘first in-first out’ basis. For the year ended 5 April 2009 the matching is done on a ‘last in-first out’ basis.

Under Non-resident Trust, you can enter the values under Unmatched Capital Gains.

Q9

Copies of your computations of capital gains arising to trustees and to any underlying company, for the year to 5 April 2009 must be enclosed.

• Do not include any gains that are assessable on the settlor under the settlor charge.

 Go to the Issue Address and Declaration and complete the relevant boxes to fill in this section of the form.  Please note the capacity in which completed will show the principal trustees details, for estates in administration the personal representatives details will be shown.