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Making sense of the Trustee Act 2000


While it might seem pretty obvious that trustees must look after the best interests of those who benefit from the trust, their obligation to do so is so important that the Trustee Act 2000 makes it a statutory duty of care.

The Act, which came into force in 2001 and applies in England and Wales, was designed to modernise the way that trustees oversee the management of investments held in trust and to give them a more general power of investment.

In effect, this means that trustees can make use of a wider range of investments than they were able to before the Act, including collective investments such as unit trust and investment bonds.

As well as the duty of care requiring the trustee to exercise “such care and skill as is reasonable in the circumstances” in everything they do in relation to the trust, there are specific responsibilities regarding what is known as the standard investment criteria.

This means that the trustee must make sure that any investment proposed or retained by the trust is suitable for it and must also consider the need to diversify investments, where appropriate.

Keith Lyons, a director of LRH Wealth Management Limited, says: “Many trustees are professionals, who are used to dealing with trust matters but for those who are not au fait with the issues and for non-professional trustees, meeting the obligations of the Act may seem daunting.

“In these circumstances, it’s wise to seek the advice of professionals in the field to ensure compliance with the Trustee Act 2000 and peace of mind for the trustee.”

LRH Wealth Management have a Trust Compliance flowchart available to assist trustees in identifying their resposibilities. Please complete the below form to download a copy of the checklist or for more information, please contact us.

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Latest News

Capital allowances: Full Expensing vs AIA vs Writing-Down Allowances

May 12th, 2025

Capital allowances allow businesses to claim tax relief on money invested in assets like machinery, equipment, or certain vehicles used commercially.

There are a variety of capital allowances available, including:

  • Full Expensing
  • Annual Investment Allowance (AIA)
  • Writing-Down Allowances (WDA)

The allowance that your business is eligible for depends on what you buy, how much you invest, and how your business is structured.

Full Expensing

Full Expensing allows companies to deduct 100 per cent of the cost of qualifying plant and machinery assets from taxable profits in the year of purchase.

This applies to new assets only and is available to limited companies subject to Corporation Tax.

It is an ideal option if you are looking for immediate relief or using the investment to improve cash flow.

Annual Investment Allowance

The AIA offers a similar benefit but is more widely available to sole traders, partnerships, and limited companies.

This allowance allows for 100 per cent relief on qualifying expenditure up to £1 million per year.

Unlike Full Expensing, AIA can apply to both new and used assets, though exclusions can apply to assets such as leased items.

Writing-Down Allowances

WDAs apply to any expenditure that exceeds the AIA threshold or when assets are not eligible for Full Expensing or the AIA.

These allowances offer tax relief spread over several years, typically at a rate of relief against profits of 18 per cent for main pool items and six per cent for special rate pool items, like integral features or solar panels.

How to claim capital allowances

Capital allowances must be claimed within your tax return and can be set against your business’s taxable profits. Eligible items must be used in your business, not for personal use.

There are additional schemes, such as Enhanced Capital Allowances, which can be used for “eco” investments, which may also be useful to certain businesses.

For a full list of qualifying items and further guidance on how to claim, please visit gov.uk/capital-allowances or speak to your tax adviser.

If you would like to know more about the capital allowances available to your business, please get in touch.

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