HMRC has launched a consultation setting out the principles for taxing trusts and are seeking views and evidence on reform in line with them.

The consultation document summarises the policy principles underpinning the review, which are transparency, fairness and simplicity. In addition, the administrative processes in place should serve to reduce the risk of error.

Simon Rylatt, partner at private wealth law firm Boodle Hatfield, said: “It is in some ways surprising to see such a wide-ranging review given that, over the last couple of decades, many historic tax reliefs associated with trusts have been legislated away....