Difficult distributions

Payments are frequently made to trust beneficiaries with the tax consequences considered later. In a previous employment of mine if the payments made by a trust in a year exceeded the available tax pool (therefore giving rise to a charge) the instruction was simply to only include as revenue as much as could be covered by the tax pool and to treat the remainder as capital.

With more experience I now think that there should also have been some sort of 'return' as far as the capital side of things is concerned by way of an IHT100/100c. Certainly I was never instructed to do that being way too low on the pecking order to be trusted with such a complicated task; but nor to my knowledge did any of my colleagues. Am I worrying unnecessarily?

In my current firm we have a...