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Govt plans IHT trusts crackdown

Government ministers have drawn up plans to crackdown on savers using IHT trusts to reduce their tax burden, The Daily Telegraph reports.

According to the report, policymakers are concerned that growing numbers of people are using trusts to reduce the amount of tax they pay after death.

It says HMRC plans to target IHT trusts through “accelerated payment notices”. The Revenue was handed the power to issue APNs – demands to pay tax within 90 days – in this year’s Finance Bill.

HMRC told the Telegraph it does not want the new laws to affect trusts or schemes that “are used legitimately in many arrangements by the vast majority of people”.

A spokesman for HMRC says “very small numbers” of wealthy people would be affected, with the focus on those who had taken “deliberate” action to avoid tax. 

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. This from a party who muttered about doing away with IHT or increasing the limit to £1 million.

    Doesn’t this now justify my well aired and long held disgust of all politicians?

  2. Has any one taken the time to read the story see the last part below

    How to protect your wealth from the taxman: see updates in our weekly newsletter

    Get professional Inheritance Tax advice from the Telegraph

  3. A spokesman for HMRC says “very small numbers” of wealthy people would be affected, with the focus on those who had taken “deliberate” action to avoid tax.

    Anybody who invests in anything that avoids tax ( pensions and ISA’s included) takes that action “deliberately” – so that statement is about as helpful as a chocolate teapot.

    Unless HMG is much more specific about what concerns them, it risks the entire finanacial planning process (including investments into schemes which HMG encouriages through tax releifs) grinding to a halt.

  4. I agree with Chipping. Instead of talking in sound bites why don’t our politicians specify exactly what they are trying to clamp down on? I presume, but do not know, that the use of Discounted Gift Trusts, Loan Trusts, Discretionary Trusts and Bare Trusts to make PETS is perfectly legitimate in the government’s eyes? If not, please tell us so that we do not tell our clients to do something which subsequently becomes pointless. Not all politicians merit your disgust Harry, but it seems that there are too many of them in power that do.

  5. I agree withy Brian. I had ordered the AF1 workbook ready to do that and the AF£ too, but things seem to be changing so much, so often causing complete uncertainty, there isn’t a lot of point in doing an exam which is getting to the stage that the manual is out of date a week after printing, let alone when you sit the exam!

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