Meeting Points

Conference

Meeting Points

RALPH RAY CTA (Fellow) TEP BSc (Econ) Solicitor Consultant to Wilsons of Salisbury reports on the Tolley's Tax Planning for 2005 Conference.

Reverter to settlor

Emma Chamberlain barrister at 5 Stone Buildings Lincoln's Inn covered reverter to settlor trusts. They tend to be used to hold property which produces neither income nor chargeable gains e.g. a family home which is occupied by the life tenant or a bond. The device is still often used to obtain only or main residence relief on what is effectively a second home of the settlor.

Example:

Suppose son Eric wants to purchase a property for his mother. He decides to settle it on interest in possession trusts for his mother who is in...