Trusts and Estates

Accumulation and Maintenance settlements were seen as one of the most potent weapons in the armoury of the tax planner, in the days of Capital Transfer Tax. The legislation for that tax contained no provision for Potentially Exempt transfers. All..

In last month’s issue of Trusts and Estates there was a discussion of the use of trusts, and other CGT disposals to crystallise entitlements to CGT reliefs. For the most part, the discussion centred on Tapering Relief at the Business Assets rate. However, similar considerations may apply where CGT holdover relief is in issue.

The Inland Revenue is now confirming the revised interpretation the expression “listed on a recognised stock exchange” which was put out for consultation in PR 76/01 issued on 25 April 2001. The revised interpretation will be applied from 28 November 2001. A statement of practice will be issued shortly.

This Pre-Budget Report confirms improvements to the Capital Gains Tax business assets taper relief, as announced in June 2001.

The Chancellor’s pre-Budget Statement has duly been delivered to Parliament to the plaudits of (most of) his political supporters and the criticisms of his political opponents. For professional advisers concerned with the administration of trusts and the estates of deceased persons, it will have been something of a non-event. At least there were no unpleasant surprises. Tax planners will probably, on balance, be relieved that the Chancellor has not felt it necessary to take any action in response to the decisions of the High Court, confirmed by the Court of Appeal in Melville v IRC 2001 STC 1271.