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 trusts created by lifetime gift since 21 March 2006). In the latest of those consultations, issued during the Summer of 2014, attention was focused on the nil-rate band that might be brought into account when calculating the 10 yearly periodic charges, and the exit charges when property left the settlement. The consultation document suggested that every individual should be entitled to allocate a settlement nil-rate band to be allocated among settlements made on or after 6 June 2014, including additions to settlements made before then. It was anticipated that legislation might be included in the Finance Bill 2015. Nothing was said by the Chancellor, in his speech on 3 December 2014, but the accompanying document contained the following: