Claiming expenses for setting up a trust

[Nominees]

Can we claim the costs of setting up a trust in our "personal" tax return?

or

Do we have to put money into the trust and get the trust to pay us back. This would mean the trust would be able to claim the costs for creating itself.

Anyway what I really want to know is whether it is legal to use the first option?

Thanks,

Nom

 

[Sim]

Nope - it's not your expense to claim I'm afraid. It's also a "capital" cost and not a cost of doing business I think you'll find. Dale or another of our local accountants should be able to confirm that.

 

[Nominees]

Will wait and see if others can comment on this.

Nom

 

[DaleGG]

HI

I guess a lot would depend upon the wording of the invoice from whomever created the trust for you. In most cases, the payment is not deductible although you can write it off oer 5 years from memory (yes, similar to the way that borrowing costs work)

However, I have known of some people to provide an invoice that is sufficiently vague and referring to professional advice and services generally for the amount to be claimed.

Dale

 

[NigelW]

HI

I guess a lot would depend upon the wording of the invoice from whomever created the trust for you. In most cases, the payment is not deductible although you can write it off oer 5 years from memory (yes, similar to the way that borrowing costs work)

However, I have known of some people to provide an invoice that is sufficiently vague and referring to professional advice and services generally for the amount to be claimed.

Dale

I.e. the professional fees for establishing the structure may be a relatively small proportion of the invoice and the "tax advice" component may be relatively high - thus maximising the immediate deductibility as this is part of the cost of managing your tax affairs... now of course it must reflect the actual work involved...

 

[XBenX]

Very well worded Dale =)