TSEM3484 | Trust income and gains: vulnerable beneficiaries: enquiries: penalties - failure to give notice that the election is no longer effective

If the trustees do not give the necessary notice (see TSEM3450) within the 90 day limit that:

• the person in relation to whom the election is made ceases to be a vulnerable person,

• the trusts in relation to which the election is made cease to be qualifying trusts, or

• the trusts have terminated

they may be liable to an initial penalty of £300 and a continuing penalty of up to £60 a day for each day that the failure continues. These penalties are chargeable in accordance with TMA1970/S98.

The election will no longer be in force whether or not the trustees give the necessary notice.