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Tax Break Incentive
The Next Step
Single Beneficiary per Trust
In the Finance Act 2013 the legislation stipulates that to qualify as a ‘disabled persons trust’ the trust must name just one named beneficiary.
Prior to this legislation it was common practice to include a range of people (including the disabled person) as potential beneficiaries and providing that at least 50% of the trust fund was used for the disabled person’s benefit the whole trust fund would qualify for preferential tax treatment.
The Finance Act 2013 introduced a broader definition of ‘disabled’ person. The definition now includes people in receipt of:
Time Limits Apply
To claim the special tax treatment for a vulnerable person (That is someone who is either a minor child or disabled) form VPE1 must be completed and submitted to HM Revenue and Customs.
Time restraints apply.
More information is available here.