HMRC contacts trusts over tax return information

HMRC is contacting some trusts after identifying potential errors in the way their latest Trust and Estate Tax Return was completed.

The latest HMRC campaign is focused on trusts that have reported themselves as something other than an accumulation or discretionary trust, where information held by HMRC suggests this classification may not be correct.

Why does this matter? The type of trust can affect how income is taxed, with accumulation and discretionary trusts generally subject to higher income tax rates than some other types of trust.

HMRC is asking affected trustees to review their return and check that the information provided accurately reflects the trust’s current circumstances. While HMRC may have identified a potential discrepancy based on the trust’s name, the position can change over time, so trustees should consider the actual terms and circumstances of their trust.

If you receive a letter from HMRC, don’t ignore it. Check the details of the trust and the return submitted, and consider taking professional advice if you are unsure whether the trust has been correctly classified.

HMRC has set 2 November 2026 as the deadline for affected trustees to take action.

If you are responsible for a trust and have received correspondence from HMRC, Verallo can help you understand what is required and whether any action is needed. Get in touch with our experts today.