From 1 April 2022 trusts are required to provide more information on their annual returns for the 2022 tax year onwards.
Does your trust need to comply with the additional reporting requirements?
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- any amounts withdrawn from the trust by the beneficiaries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 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.
Minimum standards for financial reporting by domestic trusts - order in council