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A delicate business

07 September 2006
Issue: 4074 / Categories: Comment & Analysis , Inheritance Tax
MARK McLAUGHLIN and TOBY HARRIS ponder some planning points and pitfalls in connection with inheritance tax business and agricultural property reliefs.

THE GOVERNMENT MAY have recently attacked trusts in inheritance tax terms but the generous business and agricultural reliefs remain intact for the time being at least. In fact Finance Act 2006 has the indirect effect that reliefs such as business property relief agricultural property relief and heritage relief will be more important than many practitioners may previously have considered them.

Another effect of the recent inheritance tax changes is that moderately wealthy families must consider making gifts earlier in life than hitherto. In the past it was fairly common for people to consider their financial priorities at around the age of 60 to 65 evaluate the pension pot and likely living or nursing-home needs and decide if there was anything left over that could be given to children. New urgency arises because the inheritance tax restrictions on gifts into trust have the effect that...

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