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Trusts don't you just love 'em

By: Language: English Series: Taxation ; 157(4055) 27 April 2006, 99-102(4)Publication details: 2006Subject(s): Summary: The Chancellor of the Exchequer has announced some new rules to the inheritance tax treatment of trusts contained in the Finance (No 2) Bill 2006 Sched 20. One of the most dramatic changes is the restriction on Potentially Exempt Transfers (PETs). From 22 March 2006, only outright gifts to other individuals and gifts to disabled trusts will qualify as PETs; the only exception to this rule being transitional serial interests. A new regime for the ongoing tax treatment of trusts has also been introduced. But the author believes that these new rules have overcomplicated inheritance tax and that this factor may deter citizens from dabbling in trusts.
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Journal article London Journal article L133389 (Browse shelf(Opens below)) 1 Available 133389-1001

The Chancellor of the Exchequer has announced some new rules to the inheritance tax treatment of trusts contained in the Finance (No 2) Bill 2006 Sched 20. One of the most dramatic changes is the restriction on Potentially Exempt Transfers (PETs). From 22 March 2006, only outright gifts to other individuals and gifts to disabled trusts will qualify as PETs; the only exception to this rule being transitional serial interests. A new regime for the ongoing tax treatment of trusts has also been introduced. But the author believes that these new rules have overcomplicated inheritance tax and that this factor may deter citizens from dabbling in trusts.