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TAXguide 13/17 - Trusts and mandated income

Following the changes to the taxation of dividends and interest generally being paid gross, the question has arisen as to what is meant by mandated income in connection with the completion, or not, as the case may be of SA900. TAXguide 13/17 outlines a series of scenarios posed to HMRC to clarify the position, alongside HMRC's response. Read a summary here, Tax Faculty members can download the full guide.

The Trust SA Return asks if the income is mandated to the beneficiary and if all the remaining income not mandated has been taxed at source then there is no need to complete the SA900 and the beneficiary can instead return the income directly on their personal SA.

In essence this is an administrative shortcut  - the tax paid remains the same; it saves time and costs for the trustees and for HMRC.