Family trusts – new tax law

When you put in a family trust tax return in the coming year (2022 tax year), more information is going to be required by Inland Revenue:

  • transfers by associated people (generally means relatives of the beneficiaries) to the trust

  • loans between the trust and related parties

  • more details about distributions to beneficiaries

  • more details about any settlements (includes free
    services to the trust and money donated) on the trust

  • information about the power to appoint or dismiss trustees

  • Inland Revenue could ask for information back-dated for seven years.

Karen Hardie