Taxation of offshore trusts: overview

An overview of the taxation of offshore (non-UK resident) trusts set up by UK individuals. This practice note outlines how capital gains tax and income tax apply to offshore trusts, including special rules for trusts for vulnerable beneficiaries. The note links to information about UK trusts and inheritance tax, and deals briefly with stamp taxes and VAT. It is aimed at those who are unfamiliar with the taxation of offshore trusts, or those who require a quick reminder.

We are updating this resource in the light of the further consultation document on reforms to the taxation of non-UK domiciled individuals published by HMRC on 18 August. To follow progress of this development see Private client tax legislation tracker 2015-16: Permanent non domiciled tax status abolished, IHT: UK Property owned indirectly, Remittance basis: de minimis exemption, Remittance basis: business investment relief.


The full text of this resource is available by logging in or by requesting a trial. If you have any questions, please contact us or your Practical Law Account Executive.

Free trial

A free trial will give you:

Unlimited access to our online legal know-how services during the trial period
Full training and support
Four issues of Practical Law The Journal, the companion to Practical Law online
Weekly update e-mails on current legal developments in your practice area

Log in using Practical Law username

Only use this login if you have not set up OnePass for Practical Law

{ "siteName" : "PLC", "objType" : "PLC_Doc_C", "objID" : "1247243582692", "objName" : "ACT_OWNED - READ_ONLY - 5-383-6759", "userID" : "2", "objUrl" : "", "pageType" : "Resource", "academicUserID" : "", "contentAccessed" : "false", "analyticsPermCookie" : "25e8a493e:15b1a8a3a8d:-3dc1", "analyticsSessionCookie" : "25e8a493e:15b1a8a3a8d:-3dc0", "statisticSensorPath" : "" }