188ÌåÓý

Trusts may be resident in the United Kingdom under UK tax law, and also resident for the same period in another country under that country’s rules - if so, they are dual resident.

If there is a Double Taxation Agreement with another country, it may have a ‘tie breaker� provision. A tie breaker makes the trust a resident of one of the countries but this is only for the purposes of applying the provisions of the Double Taxation Agreement. The rules for determining ‘residence� for the purposes of a Double Taxation Agreement can be complex. For trusts, the provisions look at where the effective management of the trust is situated.

If it is ‘dual resident� the trust may be able to claim the exemption and reliefs from UK tax granted to residents of that other country.

Internal user only should refer any case in which a trust claims to be dual resident for a particular year to BT&C Trusts.