Inheritance Tax

A view of the tenth and last Finance Bill debate sitting

RWJ Parry, HFA Piney and SA Staveley (TC3548)

Will mortgage interest be fully allowable if only part of the property is owned?

An elderly client makes regular annual charitable and non-charitable donations. The latter includes an allowance to his daughter.

HMRC have published a third consultation document on simplifying the inheritance tax (IHT) treatment of relevant property trust charges.

The document’s proposals aim to prevent taxpayers reducing their IHT liabilities by setting up multiple trusts for their heirs, each with a £325,000 tax-free allowance.

Giles v Royal National Institute for the Blind and others, Chancery Division

The future of trusts in the light of proposed inheritance tax reforms and other recent developments

Advice is required on how ITTOIA 2005, s 629 taxes the trust income on the settlor of a parental discretionary trust and how payments to the children are matched against the “available trust income”

Advantages and pitfalls of dividends paid to spouses and civil partners

Gilchrist (as trustee of the J P Gilchrist 1993 Settlement) v CRC, Upper Tribunal (Tax and Chancery Chamber)

Under a will trust the settlor’s partner was provided with a residence and annuity for the rest of her life. Legacies were also to be paid to grandchildren on their 25th birthdays. The cash funds have been exhausted

There is uncertainty as to whether a form R185 (Trust Income) or a form R185 (Settlor) should be issued when a settlor is the beneficiary of an interest in possession trust