Engagement Letter Template for Trust Accounts & Tax Return

• that all returns are to be made on the basis of full disclosure of all sources of income, charges, allowances and capital transactions;
• to provide all information necessary for dealing with the trust’s/estate’s taxation affairs and trust registration and registration updates: we will rely on the information being true, correct and complete and will not audit the information;
• to advise us of distributions made within 30 days of such an event;
• to provide full details of all UK residential property disposals including associated costs/valuations prior to disposal.  Where you consider the trustees will be non-UK resident in the tax year of disposal or (the deceased was non-resident at the date of death, if relevant), full details of all UK property disposals (residential and non-residential) and disposals of shares in UK property rich companies or UK property rich collective investment vehicles,  or such other entities must be advised prior to exchange of contracts or agreement to transfer shares or units.  If information is received after this date, we cannot guarantee that we can provide advice on the amount of capital gains tax due or submit an in-year return within 60 days after the completion date.
• to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with the trust’s or estate’s affairs;
• to provide us with information in sufficient time for the trust’s/estate’s self-assessment tax returns to be completed and submitted by the due date the following the end of the tax year. In order that we can do this, we need to receive all relevant information by at least three months before the due date. Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee for so doing;
• to provide us with information in sufficient time for the trust’s/estate’s inheritance tax returns to be completed and submitted by the due dates;
• to provide us with information in sufficient time for the … return to be completed and submitted. Where feasible, we may agree to complete your return within a shorter period but may charge an additional fee for so doing.

Our Responsibilities

• the trust/estate self-assessment tax returns together with any supplementary pages required; and
• all inheritance tax returns required.

Excluded, Ad Hoc and Advisory Work

• advising on the in-year Capital Gains Tax (CGT) reporting requirements on disposals of property, and preparing the in-year return and calculating the CGT due where required.  We will require you to provide information as early as possible in advance of exchange of contracts in order to provide advice on the tax implications, reporting requirements and to quantify the tax bill;
• advising on ad hoc transactions and queries (including telephone conversations), preparing and submitting information in the relevant format to HMRC and calculating any related tax liabilities;
• advising on double tax relief if appropriate;
• dealing with any enquiry opened into a trust/estate self-assessment tax return or tax affairs by HMRC; and
• dealing with any enquiries and/or assessments raised by HMRC in relation to inheritance tax.
• preparing any amended returns that may be required and corresponding with HMRC as necessary.

Changes in the Law, in Practice or in Public Policy

Limitation of Liability