As you may already be aware, Inland Revenue has made changes to the annual reporting requirements for domestic trusts to better understand and monitor the use of trusts and their financial positions. That means any trust that derives assessable income in a year will be required to provide these additional disclosures for that year (some exclusions apply). The extra information is required for the 2021-2022 tax year and every year after that.
The additional information falls into four categories:
Financial statements:
Further information needs to be included on the IR6, such as the trust's financial position including:
- a profit or loss statement,
- details of assets, liabilities and equity
Settlements:
Details of settlements will need to be provided with the trust's IR6 return, such as:
- details of the person who made the settlement (the settlor)
- the nature and amount of the settlement
Beneficiaries:
Details about distributions made to beneficiaries will need to be included on the Estate or trust beneficiary details - IR6B, including:
-
the beneficiaries' details
- the amount and nature of any distributions made to the beneficiaries
- any amounts withdrawn from the trust by the beneficiaries
- a reconciliation of the opening and closing balance of the beneficiaries' accounts.
Power of Appointment:
You can submit details of powers of appointment through your income and tax account in myIR by selecting 'Manage power of appointment' or by paper through the post.
You will need to provide the following details of any person who holds a power of appointment:
- full name
- date of birth or commencement date
- jurisdiction of tax residency
- IRD/Taxpayer Identification Number
- commence date of power of appointment
- cease date - if ceasing to have a power of appointment.
