Personal injury bare trust

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whoisTom

Hi,

My father has set up a personal injury bare trust for his compensation.

His only other income is Universal credit. We will be setting up a Trust current account with an interest rate of 10% therefore his annual income from the trust will only be interest of less than £5k.

Does he need to register for self assessment for this and submit a return? And if so, is this income to be declared in the interest section?

JanixRubi

I wrote the wrong rates of interest in error - the interest rate is 0.10% which would make the interest income on the bare trust to be under £50 per year.

CharityVilan

If your father's only income is Universal Credit and the interest income from the trust is less than £50 per year, then he does not need to register for self-assessment or declare this income on his tax return.
However, if there are any changes to his income in the future, it's important to stay on top of tax obligations and seek advice from a professional. In the meantime, consider consulting with a workers' compensation attorney to ensure your father's compensation and trust are properly managed.