Large non-exempt Unauthorised Unit Trusts may need to pay tax quarterly

HMRC has issued a reminder that following recent changes to the Unauthorised Unit Trust (UUT) tax regime, a large non-exempt UUT, now within the charge to corporation tax, may be due to start paying its tax by quarterly instalments

A non-exempt UUT comes within charge to corporation tax from 6 April 2014 (ie, its first accounting period on or after 6 April 2014) and a new accounting period starts then.

Under the new regime, a non-exempt UUT within the charge to corporation tax may be liable to pay tax by quarterly instalment payments if it is large, and the first quarterly instalment will be payable six months and 13 days after the start of the accounting period.

This means if its first accounting period under the new regime starts on 6 April 2014, the first quarterly instalment would have been due on 18 October 2014.

More details are available at http://www.hmrc.gov.uk/cisc/uut-1314.htm

 

Diane Tan | Content manager - current awareness, CCH

Diane Tan is content manager, current awareness at CCH, Wolters Kluwer UK www.cch.co.uk...

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