Trusts & Estates

Planning in relation to trusts and estates can normally be described as the attempt to protect family wealth while at the same time, ensuring that the benefits of this wealth are enjoyed as intended.

Here at Vista Partners LLP we are able to take care of the compliance and administrative side of trusts and estates, ensuring that all tax obligations are met in a timely manner and that accounts are prepared on a regular basis to provide accurate financial information.

As a firm with a strong tax expertise, we also regularly become involved in advising trusts and estates with regard to minimising their tax exposure.  Our tax advice is comprehensive covering all the taxes which would be encountered.

Successful trust and estate planning requires a multi-disciplinary approach with accountants, lawyers, investment advisers and other professionals working together in tandem.

Here at Vista Partners LLP we work closely with our fellow professionals in advising trustees and personal representatives to optimise their position.

Recent success

One of our recent successes on the tax planning side related to a case which we took on from a larger national firm of accountants.  HM Revenue & Customs had opened an enquiry into the trust’s latest tax return and in particular had queried the capital gains tax computation which had been included with the return. 

HM Revenue & Customs argued that the gain was understated and wished to collect considerable tax in addition to the substantial sum which had already been paid.  The client asked us to check HM Revenue & Customs’ revised capital gains tax computation before settling the additional tax.

When reviewing the computation, it occurred to us that the asset which had been sold was a house which had been occupied by a beneficiary of the trust.  As such, if certain other conditions were met, as the property was occupied by a beneficiary as their main residence, it was possible that the ‘main residence’ exemption for capital gains tax may apply.

We researched the circumstances of the case further and discovered that the main residence relief did indeed apply.  Instead of having to pay additional tax, the trust was able to reclaim all capital gains tax which had originally been assessed!  The quantum of the tax saving here was many tens of thousands of pounds.