June 2022 Newsletter | Cylchlythyr Misol Mehefin 2022
For those who have created trusts as part of their estate and inheritance tax planning, new trust registration rules become effective on 1 September 2022. Previously, only trusts with a tax liability were required to register using HMRC's Trust Registration Service. However, all taxable and non-taxable trusts (subject to a list of exclusions) will be required to register with HMRC by 1 September, at the latest.
One example which might catch people out is if a trust has been created in a will. Under the new rules, will trusts do not need to be registered, as long as the assets are distributed within 2 years of death. If distribution has not taken place within 2 years, the will trust must be registered with HMRC.
If you are a trustee or are unsure of the registration requirements, please get in touch.
The Chancellor, Rishi Sunak, has recently announced a number of support packages to help households manage their energy bills. These measures include a £400 payment to all households with an electricity supply. In addition, there will be a separate, one-off payment of £650 for those on means-tested benefits, £300 to pensioner households who receive winter fuel payments and £150 to those receiving disability benefits.
If you have not done so already, ensure that you have claimed the working from home allowance for 2021-2022. Due to the pandemic, the full year allowance of £312 can be claimed by any individual who was required to work from home for at least one day.
For those completing self-assessment, the allowance can be claimed via the tax return, otherwise a P87 form will be required.
With summer approaching, some individuals may be contemplating purchasing luxury lodges for holiday use and rental income. For those intending to rent the property, be very wary of the advertised returns of say 8%-12%. These are calculated on full occupancy at full rates, a very unlikely scenario. If they suit your lifestyle, enjoy them and factor in the rental income of the lodge as a secondary consideration of a much, much lower net sum than is advertised.
Ask Huw & Aled: I have a Power of Attorney which was prepared a few years ago. One of my attorneys is quite frail and unable to act as Power of Attorney in the future. Can I remove that individual and can I appoint a new individual as a replacement?
It is possible to remove an Attorney by writing to the Office of the Public Guardian. They should also be advised if an Attorney moves address or dies. In these instances, you retain the original Power of Attorney document.
If you wish to appoint a new individual as an Attorney, you will need to submit a brand new application.
