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IHT – gifts of woodlands
It is a cliché that the only certainties in life are death and taxation. IHT is by no means the first tax to combine the two. It was preceded by Capital Transfer Tax (CTT) which in its turn replaced Estate Duty. It might be thought that, nearly..
Online Published Date:
02 December 2014
Appeared in issue:
Vol 28 No 09 - 02 December 2014
Trusts trustees and judges
Recently, in proceedings concerning the estate of the Earl of Cardigan, the courts have been unusually involved in events, such as the remuneration of trustees, the removal of a trustee and property held in trust, which might normally be dealt with..
Online Published Date:
02 December 2014
Appeared in issue:
Vol 28 No 09 - 02 December 2014
SECTION 175 A (1)(a) IHT ACT 1984 – discharge of liabilities “out of the estate”
Where IHT is charged on the estate of a person who died on or after 17 July 2013 (date of Royal Assent to Finance Act 2013), a new s175A (1) (a) IHT Act 1984 provides that a liability is not to be taken in calculating the IHT liability unless it is..
Online Published Date:
02 December 2014
Appeared in issue:
Vol 28 No 09 - 02 December 2014
CGT private residence exemption
The CGT exemption for gains arising from a disposal of the taxpayers “only or main residence” is very valuable to individuals. It is also important to trustees who have invested trust funds in purchasing a house for a beneficiary to live..
Online Published Date:
02 December 2014
Appeared in issue:
Vol 28 No 09 - 02 December 2014
Capital Gains Tax – personal representatives beneficiaries and allowable expenses
Under s62 (1) TCGA 1992, all the assets owned by the deceased are treated as having been acquired by the personal representatives for the value at the date of death. It is, however, made clear in the legislation that there is no Capital Gains Tax..
Online Published Date:
02 December 2014
Appeared in issue:
Vol 28 No 09 - 02 December 2014
Section 144 IHT Act 1984 – A seasonal gift from the Chancellor
Readers are doubtless familiar with the ‘timing trap’ in making distributions out of a discretionary Will trust. If the distribution is to be written back into the Will by s144 IHT act 1984, then of course it must be made within the two..
Online Published Date:
22 December 2014
Appeared in issue:
Vol 28 No 10 - 19 December 2014
The tax-efficient Will – Nil-rate band legacies and exempt beneficiaries
It is possible to draft a Will in such a way that a nil-rate band legacy is left on discretionary trusts, while the balance of the estate is left to a beneficiary who is exempt from IHT. Before the enhanced nil-rate band became available in 2008,..
Online Published Date:
22 December 2014
Appeared in issue:
Vol 28 No 10 - 19 December 2014
The Autumn Statement – IHT and trusts
Readers will doubtless recall the consultations, in recent years, in which the Revenue proposed changes in the method of calculating Inheritance Tax (IHT) charges on discretionary trusts and other ‘relevant property’ trusts (mainly..
Online Published Date:
22 December 2014
Appeared in issue:
Vol 28 No 10 - 19 December 2014
PETS chargeable transfers and cumulations
When Government was consulting, during the Summer of 2014, on changes in the way IHT would be charged on the ten-year anniversary and exit charges, it seemed that the making of lifetime settlements would be strongly discouraged. In particular it..
Online Published Date:
22 December 2014
Appeared in issue:
Vol 28 No 10 - 19 December 2014
IHT rules for trusts – Other changes
In addition to the changes aimed at multiple settlements and the extension of s144 IHT Act 1984 to appointments or distributions made during the three months following the testator’s death, discussed in the Briefings above, there are some..
Online Published Date:
22 December 2014
Appeared in issue:
Vol 28 No 10 - 19 December 2014