Put not your trust in princes

A KNOWLEDGE OF trusts is essential for those advising on capital gains tax planning because trusts have often been a useful structure for helping to mitigate tax. Such trusts may be formally constituted lifetime settlements will terms or implied arrangements from conduct.

The last few years have seen a substantial attack by the Government on tax planning involving trusts. This has included increasing tax rates restricting holdover relief where there is a settler interest restricting only or main residence relief following a holdover relief claim and most recently Schedule 20 to the current Finance Bill. This article considers the cumulative impact of these developments on capital gains tax planning and in particular the likely impact of the Finance Bill proposals. All references are to TCGA 1992 unless otherwise stated.

The new rules

Emma Chamberlain and Chris Whitehouse commented on many of the proposed changes to inheritance tax...