Inheritance tax is less and less an isolated matter and should be considered as one element of a bigger tax planning picture, says Peter Nellist

Inheritance tax (IHT) is looking increasingly like the next stamp duty land tax: a tax that will mushroom quickly to affect many more people than initially expected.

This year’s Finance Act has closed most opportunities to make a potentially exempt transfer (PET) into trust. In the main those gifts are now chargeable transfers falling within the more onerous discretionary trust regime. One interesting way round this restriction is already surfacing based on a gift into trust for a limited period and subsequently gifting the retained reversionary interest.

When announced in the Budget the changes to trusts and IHT were totally unexpected. They give rise to several questions:

- What will next year’s Budget bring:...

Jean Yves

IICJ

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