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Form R185: What, when and how?

Shared from Tax Insider: Form R185: What, when and how?
By Meg Saksida, May 2022

Meg Saksida explains when Form R185 might be received, and how it is used. 

Beneficiaries or legatees from either a trust or a death estate may be paid income during the tax year by the trustees or the personal representatives (PRs). Unless directly mandated to the taxpayer, these amounts will generally have already been taxed on the trustees or PRs, such that the beneficiary will receive the income net of tax into their bank account.  

However, the receipts need to be taxed on the beneficiary at their own rate of tax. This means that the beneficiary must calculate the tax on the gross amount, and then any tax paid already by the trustees or the PRs can be offset against the tax liability calculated on them.  

Form R185 gives the beneficiaries the information they need to do this.  

What information is needed? 

The detail on the Form,

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