This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

What is a Form R185 and why did I receive one?

Shared from Tax Insider: What is a Form R185 and why did I receive one?
By Meg Saksida, December 2023

Meg Saksida considers the purpose and application of form R185. 

If a trust beneficiary receives a Form R185 from a trustee, it is good news. It means they have been paid some income during the tax year.  

The R185 shows the net income a beneficiary received from the trust, and the associated tax paid on their behalf by the trustee. The taxation system for trustees and beneficiaries in the UK is designed such that the beneficiary cannot fail to pay at least basic rate tax on the income received from the trust. The system differs slightly if the trust is an interest in possession (IIP) to that of a discretionary trust (DT). 

Interest in possession trust 

There are two beneficiary parties in an IIP trust. The ‘remainderman’ beneficially owns the trust capital and is entitled to it at some time in the future - after the life tenant is no longer entitled

This is one of our 2523 Premium articles

To see this article in full and unlock access to our complete library of 2523 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee