Inheritance Tax

What happens if a liability is accidentally increased? Tax normalisation may be the key

A trust was established before the major changes to the tax regime that were introduced in FA 2006. However, the terms of that trust have recently been changed

When trustees are safe to release assets subject to a capital gains tax holdover election

The beneficiary of a trust has a 50% life interest in business premises from which a company – of which she is a director and 25% shareholder – trades. There is concern regarding the potential inheritance tax liability

The executors of a woman have discovered that a repayment will be made to the estate because the deceased’s former home was in the wrong council tax band

More information from the latest edition of the HMRC trusts & states newsletter

New IHT forms for Scottish estates have been published

Bowring and another (TC2766)

An offshore trust has undistributed income and stockpiled gains. If the trustees create a new trust out of the original trust assets, how are the income and gains apportioned?

The August edition of the HMRC trusts and estates newsletter has been published:

Inheritance tax treatment of compensation payments

HMRC Trusts and Estates have confirmed the treatment of compensation payments for inheritance tax purposes on the basis it can cause some difficulties for taxpayers and their agents, especially when compensation is received after the date of death.

The life tenant of a trust created by his late wife’s will is a higher-rate taxpayer and wishes to assign the income to his new wife, a basic-rate taxpayer

The inheritance tax revamp for non-domiciled spouses explained

A taxpayer died seven years ago and the estate, which was just below the inheritance tax threshold, has long been wound up. It seems a claim could be made in respect of an individual savings account and this might yield about £6,000. What are the inheritance tax implications if compensation is now paid?