Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Time limit for tax credit on trust distributions

05 August 2021
Issue: 4804 / Categories: Tax cases
Murphy and Linnett v CRC, Queen’s Bench Division, 13 July 2021

The claimants were beneficiaries of a Guernsey-resident retirement trust. Their adviser asked HMRC to confirm that extra-statutory concession (ESC) B18 applied to allow tax credits on distributions from the trust with no limitation for payments out of income received by the trustees more than six years before the year of assessment of the payment.

HMRC said credit under ESC B18 was limited to payments out of income received not more than six years before the year of assessment of the payment. The adviser asked HMRC to reconsider but before HMRC replied the distributions went ahead. The income on which they paid tax was treated as the claimants’ income for 2018-19. The beneficiaries then claimed tax credit of UK income tax paid by the trustees on UK source income arising for all years.

HMRC allowed the claims for the years from 2012-13 but rejected those for the...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon