Les Cameron, tax expert at Prudential, said:
“The government has looked to simplify the IHT treatment of trusts fairly recently. The changes mooted – broadly having only one nil rate band available for lifetime gifting – did not go ahead. We will need to see if this will be a measure that makes it harder to reduce your IHT bill or easier to administer the taxation of the trusts.
“Will the income tax and CGT treatments be under scrutiny this time? It’s far too early to tell if this will be good or bad for trusts planning. However, it should be remembered that this does not detract from trusts planning. In many cases the use of trusts is about controlling the passing on of your wealth as opposed to making it more tax efficient.”
For further information, or to speak to Les Cameron, please contact me on 0207 282 1021.