Trusts - don't you just love 'em!?

27 April 2006 / Ian Maston

Issue: 4055 / Categories: Comment & Analysis , Inheritance Tax , Trusts

IAN MASTON casts an eye over the new rules for the inheritance tax treatment of trusts contained in Schedule 20 to the Finance (No 2) Bill 2006.

READERS NOT HOLIDAYING in Outer Mongolia for the last month will be aware that the Chancellor announced some changes to the inheritance tax treatment of trusts in his March 2006 Budget. This article looks at the detail of some of the main changes as set out in the recently published Finance Bill.

Restricting PETs

The most dramatic change is the restriction on the type of lifetime transfers now qualifying as potentially exempt transfers (PETs).
Before 22 March outright gifts to other individuals gifts to interest in possession trusts gifts into accumulation and maintenance trusts and gifts to disabled trusts all qualified as PETs.
From 22 March only outright gifts to other individuals and gifts to disabled trusts will qualify as PETs. Gifts to (almost) all other trusts will now be chargeable transfers and will be treated in the same way that gifts to discretionary...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Subscribe Now...

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.

Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.