View more on these topics

ScotLife Intl claims trust avoids new IHT charge

Scottish Life International has designed a new type of trust which it says helps get round the inheritance tax crackdown introduced in the 2006 Budget.

The trust allows the settlor to make a potentially-exempt transfer and establish a flexible trust without incurring an immediate IHT charge.

Under the 2006 reforms, transfers to trusts become immediately chargeable where the value exceeds the settlor’s available nil-rate band rather than being potentially exempt.

ScotLife International says its trust enables investors to reduce their IHT liability and allows trustees to provide for beneficiaries without creating absolute entitlements. It is tightlipped about the details of the new trust and is requiring advisers to sign non-disclosure documentation.

Technical officer Neil Chadwick says: “We have put together a trust which still enables you to have a full discretionary trust without having to pay the immediate inheritance tax charge. This trust offers investors the opportunity to not only reduce the value of their IHT estate but also the added flexibility of a fully discretionary trust.

“We had intended to make this available at an earlier date. However, we wanted to make sure that it was 2008 Finance Act-friendly.”


FSA fees could rise to pay for bank risk staff

Advisers are worried that their fees may increase to fund an FSA recruitment drive in the wake of its poor handling of the Northern Rock crisis.The FSA is to recruit up to 100 staff at a cost of £15m after its self-critical report highlighted the need for better quality supervisors and risk assessors.It wants to […]

B&CE wants Govt to urgently tackle means-testing issue

B&CE Benefit Schemes is urging the Government to tackle the issue of means-testing more quickly than it is scheduled to.B&CE says it is pleased that the Department of Work and Pensions is conducting an investigation into the impact of means-testing on savers who will be joining personal accounts. But it says it is disappointed to […]

Jim Reeve joins Aifa council

Positive Solutions chief executive Jim Reeve has joined the Aifa council.Reeve joined Positive Solutions as chief executive in September 2007.Previously, he has worked for the Zurich group for 25 years eventually become managing director of Zurich IFA group in 2001.In 2004, Reeve joined Barclays as managing director of its financial planning arm.Aifa director general Chris […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment