View more on these topics

Canada Life welcomes HMRC’s DOTAS legislation

“HMRC’s tax guidance provides welcome clarity around the use of mainstream estate planning solutions, such as flexible reversionary trusts,” says Sean Christian, MD & Executive Director – International Businesses, Canada Life International.

Sean Christian said:

“The new Disclosure of Tax Avoidance Schemes (DOTAS) legislation enables HMRC to crackdown on aggressive tax avoidance schemes, while the guidance also provides clarity on acceptable arrangements. Using the guidance, advisers can be absolutely clear and confident that the solutions they recommend will not fall foul of the new rules. In our judgement, HMRC has made the right call about what’s acceptable.

“For us this is welcome news. Advisers using our Wealth Preservation Trust, commonly known as a flexible reversionary trust, are attracted by the ability to gift money while retaining an entitlement to periodic payments if required in the future. For those advisers, this guidance gives even greater assurance that using trusts of this nature is acceptable estate planning for HMRC.”

The new guidance can be found here.

Canada Life has been writing flexible reversionary trusts since 1991 and this structure is available through Canada Life International and Canada Life International Assurance (Ireland).

You can find out more about Canada Life’s Wealth Preservation Trust on its website.


About Canada Life

Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies.

Canada Life Limited, a wholly owned subsidiary of Great-West Lifeco, began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike. As well as providing stability and security through its individual contracts, Canada Life Limited has grown to become the leading provider of competitively priced group insurance solutions. www.canadalife.co.uk.

Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Financial Services Authority. Canada Life International Assurance Limited and Canada Life International Assurance (Ireland) DAC are authorised and regulated by the Central Bank of Ireland.

Recommended

Offshore amnesty could bring in 5bn

The Government’s amnesty for UK taxpayers with undisclosed offshore bank accounts could net the Treasury up to 5bn.

1

Auto-enrolment arrives but is it a done deal for small firms?

When business secretary Vince Cable told the Liberal Democrat party conference he had defeated the Tory “headbangers” who “find sacking people an aphrodisiac”, there was little doubt who he was thinking of – Adrian Beecroft. The Beecroft report, which was commissioned by the Government and published in October last year, contains a series of radical […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment