Committee debates on Finance Bill 2020 – sessions 7 and 8

The seventh sitting of the public bill committee’s debate on the Finance Bill started with clauses 72 (‘Excluded property etc’) and 73 (‘Transfers between settlements etc’). The first provides that additions of assets by UK-domiciled individuals to trusts made when they were non-domiciled cannot be excluded property and are therefore within the scope of inheritance tax. The second introduces legislation to provide that transfers between trusts are subject to additional excluded property tests.

Jesse Norman the financial secretary to the Treasury explained that the clauses had been introduced following a decision by the Court of Appeal (Barclays Wealth Trustees (Jersey) Ltd and another v HMRC [2017] EWCA Civ 1512). He explained: ‘To give some background the inheritance tax treatment of trusts depends on the domicile status of the person setting up the trust when it was...