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The effect of the settled excluded property provision in this year’s Finance Bill, examined by SIMON McKIE
KEY POINTS
- Purpose of clause 208.
- Excluded property.
- Practical application of the clause.
- Unnecessary further complication.
On Budget day the government announced that the provisions now in Finance Bill 2012 clause 208 would be introduced explaining:
‘The aim of the measure is to close avoidance schemes involving the acquisition of interests in settled property in offshore trusts by ensuring that any reduction in the value of a person’s estate as a result of the arrangements is charged to inheritance tax.’
The example Suitable Settlements illustrates how the new provisions apply to their target after discussion with the helpful HMRC spokesman on the matter.
Except where otherwise specified statutory references are to IHTA 1984.
Before clause 208
Ignoring the effects of clause...
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