Non-resident trusts
Source: gov.uk (2025-12-11)

Understand the basic rules for trustees, settlors and beneficiaries of non-resident trusts.

On 6 April 2025 the foreign income and gains regime replaced the remittance basis. If you make a claim for relief under the regime, you will not pay tax on your eligible foreign income and gains.

On 6 April 2025 a Temporary Repatriation Facility (TRF) was also introduced. If you use the TRF you can pay a reduced tax charge on amounts that you may choose to remit from 6 April 2025 onwards.

This guidance has not been updated to include these changes. You can:
- check if you can claim relief under the foreign income and gains regime (https://www.gov.uk/guidance/check-if-you-can-claim-the-4-year-foreign-income-and-gains-regime)
- read the Remittance Basis and Domicile Manual (https://www.gov.uk/hmrc-internal-manuals/residence-domicile-and-remittance-basis) to find out if you’re eligible to use the TRF
What ‘non-resident trusts’ means

For trusts created on or after 6 April 2025, a non-resident trust is usually a trust when:
- none of the trustees are resident in the UK for tax purposes
- only some trustees are resident in the UK and the settlor was not resident when the trust was set up or funds added
The domicile of the settlor is no longer a factor in determining the trust’s residence. However, the residence of the settlor may still be considered in certain circumstances.

A trust created on or before 5 April 2025, is usually a non-resident trust when:
- none of the trustees are resident in the UK for tax purposes
- not resident when the trust was set up or funds were added
- not domiciled or deemed domicile in the UK when the trust was set up or funds were added
How to define domicile

Domicile is a common concept in law. It links an individual to a territory where there’s a single system of law.

Each individual has a domicile of origin at birth, but your domicile can change.

A person is usually domiciled in the place they consider their permanent home, where they have the closest ties. You can only have one domicile at any given time.

Who to contact if you’re setting up a non-resident trust

If you’re setting up a trust and you think it may be non-resident, you may need to register the trust.

Find out more about:
- when and how to register a trust (https://www.gov.uk/trusts-taxes/registering-a-trust)
- how to register a trust as an agent (https://www.gov.uk/guidance/register-your-clients-trust)
- how to register a trust as a trustee (https://www.gov.uk/guidance/register-a-trust-as-a-trustee)
To discuss overseas tax or non-resident trusts issues, contact the Trusts helpline (https://www.gov.uk/find-hmrc-contacts/trusts-enquiries).

What Income Tax you should pay

The tax rules for non-resident trusts are very complicated. Although there are general rules, each trust gets a different treatment depending on:
- if it’s a bare trust, discretionary trust or an interest in possession trust (https://www.gov.uk/trusts-taxes/types-of-trust)
- if the settlor has an interest in the trust
- the residence status of the settlors or beneficiaries
If you are a trustee of a non-resident trust, you only pay UK tax on UK income you receive.

How much you need to pay as a trustee

For most discretionary or accumulation trusts, trustees pay tax at:
- 39.35% on dividend income from stocks and shares
- 45% on UK interest (including ‘free of tax to residents abroad’ securities) if a beneficiary, or someone who might become one, is resident in the UK
- 45% on all other non-dividend income arising in the UK
For interest in possession trusts, trustees pay tax at the:
- dividend ordinary rate (8.75%) on trust dividend income
- basic rate (20%) on all other types of income
Find information on the tax free amount for trusts (https://www.gov.uk/trusts-taxes/trusts-and-income-tax).

How to declare any UK source income

You should use form SA900 Trust and Estate Tax Return (https://www.gov.uk/government/publications/self-assessment-trust-and-estate-tax-return-sa900) to declare any UK source income due from the trust.

You may need to complete form SA906 — the Trust and Estate Non-Residence supplementary pages (https://www.gov.uk/government/publications/self-assessment-trust-and-estate-non-residence-sa906).

Find out more about Income Tax and Capital Gains Tax for non-resident trusts (https://assets.publishing.service.gov.uk/media/5a7e229bed915d74e6224545/Income_Tax_and_Capital_Gains_Tax_for_non-resident_trusts.pdf) (PDF, 370 KB, 21 pages).

How much you should pay if you are a settlor

You need to pay tax on your trust’s income as if it’s your own income if either:
- you are the settlor (the person who puts assets into a trust)
- you, your spouse or civil partner can benefit from the income or capital of a non-resident trust
You will get a tax credit for the UK tax paid by the trustees on the same income.

The income of the trust is not treated as yours if you (or your spouse or civil partner) cannot benefit from it. However, you’ll also have to pay Income Tax if the:
- beneficiaries include your children
- trust makes any payments to children (https://www.gov.uk/trusts-taxes/parental-trusts-for-children) of yours who are unmarried and under the age of 18
You can claim relief for tax on income paid to your unmarried children, aged under 18, if the trustees are non-resident. This relief is given under Extra Statutory Concession (ESC) A93.

Read page 12 of Income Tax and Capital Gains Tax for non-resident trusts (https://assets.publishing.service.gov.uk/media/5a7e229bed915d74e6224545/Income_Tax_and_Capital_Gains_Tax_for_non-resident_trusts.pdf) (PDF, 370 KB, 21 pages) for more guidance.

How much you should pay if you are a beneficiary

If you’re a UK resident beneficiary of a non-resident trust, you may need to complete a Self Assessment tax return and the SA107 supplementary pages (https://www.gov.uk/government/publications/self-assessment-trusts-etc-sa107). The guidance notes for these pages tell you how to complete them.

If you’re a UK resident and get income from a non-resident discretionary trust, you can get tax relief if the trustees have already paid tax on the income. This relief is given under ESC B18.

If you’re a non-resident beneficiary of a non-resident income in possession trust, you only need include income from a UK source on your tax return.

Read page 11 of Income Tax and Capital Gains Tax for non-resident trusts (https://assets.publishing.service.gov.uk/media/5a7e229bed915d74e6224545/Income_Tax_and_Capital_Gains_Tax_for_non-resident_trusts.pdf) (PDF, 370 KB, 21 pages) for more guidance.

What Capital Gains Tax you should pay

Capital Gains Tax is a tax on the gain in the value of assets such as shares, land or buildings. A trust may need to pay tax if assets have gone up in value since being put into the trust and are:
- sold
- given away
- exchanged (disposed of)
Find out if your trust may need to pay Capital Gains Tax (https://www.gov.uk/trusts-taxes/trusts-and-capital-gains-tax).

Trustees of non-resident trusts do not usually pay UK Capital Gains Tax. Instead, the settlor or the beneficiaries may have to pay tax on gains made by the non-resident trustees.

If you’re a trustee of a non-resident trust and dispose of UK property or land, you may be liable to pay Capital Gains Tax. You can find out more about Capital Gains Tax for UK property or land if you’re non-resident (https://www.gov.uk/capital-gains-tax-for-non-residents-uk-residential-property).

The tax rate for non-resident trustees is the same as for resident trustees, and the annual exempt amount is also available.

When you need to report disposal of UK property

Report disposal of UK property or land to us within 60 days of the completion date, using a Capital Gains Tax on UK property account (https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020).

Register with us

Trustees of non-resident trusts, must register with us before either:
- creating a Capital Gains Tax on UK property account
- completing a Capital Gains Tax on UK property form (https://www.gov.uk/guidance/report-your-capital-gains-tax-on-uk-property-by-post) to report the disposal by post
Register on the Trust Registration Service even if there is no tax to pay or you believe your trust is exempt.

Find out more about when and how to register a trust (https://www.gov.uk/trusts-taxes/registering-a-trust).

Read HS299 Self Assessment helpsheet (https://www.gov.uk/government/publications/non-resident-trusts-and-capital-gains-tax-hs299-self-assessment-helpsheet) to work out if you have taxable capital gains as settlor of a non-resident trust.

What Inheritance Tax you should pay

Trustees of trusts, including of non-resident trusts, may have to pay Inheritance Tax on assets in the trust.

For the years up to 5 April 2025, trustees of non-resident trusts will only have to pay it:
- on assets situated outside the UK
- if the settlor was domiciled (or deemed domiciled) in the UK when the assets were put into the trust
From 6 April 2025, if the settlor is a long-term UK resident, non-UK assets will be subject to Inheritance Tax.

Find more information about these rules in Inheritance Tax if you’re a long-term UK resident (https://www.gov.uk/guidance/inheritance-tax-if-youre-a-long-term-uk-resident).

When Inheritance Tax may be due

Depending on the value of the assets in the trust, Inheritance Tax may be due when:
- assets are put into the trust
- the trust reaches a ten-year anniversary
- assets are taken out of the trust or the trust ceases
It does not matter if the trustees or beneficiaries are resident in the UK or not.

Read Trusts and Inheritance Tax (https://www.gov.uk/guidance/trusts-and-inheritance-tax) for more information.

More information

Contact the Trusts helpline (https://www.gov.uk/find-hmrc-contacts/trusts-enquiries) for more help. You should get professional advice from a tax agent or accountant about non-resident trusts.