Trusts and Estates

The general rule for IHT is that the life tenant of a settlement is deemed to be the owner of the underlying trust assets with the result that, on his or her death, they will be fully chargeable to IHT they, or a life interest in them, pass to the..

From the inception of Capital Gains Tax, non-residents, (including non-resident trustees) have been exempt from the tax. This was so even where the settlor was resident in the U.K. Clearly, this opened the way for tax avoidance. The initial..

For the tax planner there is much to be said for the family business being carried on through the medium of an unquoted trading company. Considerable IHT and CGT advantages may be attached to the shares in the company and, possibly, assets used by..

The Court of Appeal has dismissed the Revenue appeal from the High Court decision, in favour of the taxpayer in Melville v CIR (2001) EWCA Civ 1247. It will be recalled that this was the case in which the taxpayer settled several tens of millions..

The June 2001 issue of the Inland Revenue Tax Bulletin contains a discussion of the meaning of the expression “trading company” as used in the legislation for CGT tapering relief. The question, of whether or not a particular company is a “trading company” will be vital for deciding whether or not a gain will enjoy the now very favourable tapering regime applicable to business assets. This does not just relate to gains arising from a disposal of the shares in the company. It may also be relevant for assets used by the company – at any rate where the company concerned is an unquoted company.