The end of trusts as we know them?

13 April 2006 / Wilson Cotton

Issue: 4053 / Categories: Comment & Analysis , Income Tax , Inheritance Tax , Trusts

Following on from Taxation magazine's Budget Breakfast Briefing, WILSON COTTON summarises the proposals for the tax treatment of trusts.

THOSE WHO FOLLOW current social trends will surely not have failed to have noticed that flares prog-rock and Harold Wilson are back in fashion. There is also certainly a whiff of the '70s about the Budget Note 25 Aligning the Inheritance Tax Treatment for Trusts. Whilst some might hold it a badge of honour to be attacked in the letters page of The Times by pre-eminent members of the Chancery bar the Chairman of the National Trust and the Vice Chairman of Christies the damage that has been done to the relationship between advisers and Her Majesty's Revenue and Customs should not be underestimated.

Tax neutrality

For the last two years HMRC have been consulting on the taxation of trusts with professional bodies. Income and capital gains tax have formed the subject of the consultation exercise with no mention of inheritance tax.
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