Owen Clutton reports on welcome changes to the Finance Bill concerning taxation of trusts and wills
The government has relented on draconian proposals for will trusts concerning the spouse exemption. The pre-Budget position has largely been restored.
Restrictive provisions for minors have been slightly relaxed: where the will trust provides that a child must receive capital no later than 25, the trust remains free of extra IHT charges (until the child is 18). There are further transitional rules for existing accumulation and maintenance trusts where children take capital by 25.
Amendments to the Finance Bill passed on 15 June dispensed with restrictive conditions for putting a life interest outside the discretionary trust regime. As under the old rules, a life interest under a will or ...