Trusts have seen something of an attack in recent years with the imposition of higher inheritance tax ("IHT") charges making it more expensive for trusts to be created and run. Sadly, this trend looks set to continue with the government confirming in the Budget 2014 that they propose continuing with their consultation on "simplifying" the trust IHT regime. It may sound innocuous enough, but we believe the simplification proposals will in fact lead to higher IHT charges on trusts in many cases.
In this article first published in Taxation Magazine (www.taxation.co.uk), Fay Copeland and Dominic Potier from Wedlake Bell's Private Client team look closely at the proposals and how they will impact on trusts, reflecting on what the future might hold for trusts as a result.
"Trust the Pilot" – article in Taxation (22 May 2014)
Irrespective of whether these proposals go through, trusts remain a traditional and reliable way of holding and controlling wealth, offering succession planning opportunities and protection for the assets and beneficiaries involved. These benefits are not touched by the proposals and for many will remain the central reason behind creating a trust, tax attack or not.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
