Registration and annual maintenance of a trust: a UK-registered trust is a tried and tested financial vehicle designed to protect your assets and help you streamline your tax affairs, and they are especially popular with non-UK domiciled and foreign entities. If you want to take advantage of a trust then Coddan Formations Agency can help you with the registration and your annual maintenance to make sure you stay in the good books of HMRC.
A trust is relatively simple to set up and was initially devised as a simple vehicle to hold assets, shares and other property on behalf of a beneficiary, for instance a child who inherits money before the age of 18 or someone that is not capable of handling their money for another reason.
Trusts have gone well beyond their initial purpose, though, and now have been widely adopted and adapted from the traditional living, testamentary and even simpler bare trusts.
The documents must be right and it can be costly. It's best to employ the services of a solicitor or, alternatively, a formation agent that will almost always work out cheaper.
You have to choose which type of trust you want to create, with the most common form being the discretionary trust, which can be a mixed resident trust where one trustee is a UK resident and one isn't. The laws are complex so take the time to seek the right advice, but when one trustee is based outside the United Kingdom then the trust may not be regarded as a "resident" for tax purposes. This allows non-resident status of the trust, while allowing income from the Great Britain to be received onshore without paying the UK tax.
Registering a trust can be done on a same day basis and requires a trustee, who controls the trust, and a beneficiary, who stands to benefit from the assets and proceeds.
The annual reporting requirements are, on the face of it, relatively simple. The beneficiary must take responsibility in their self-assessment. If the assets in most kinds of trust increase in value, though, there is capital gains tax to be considered.