View more on these topics

Standard welcomes decision on DGTs

The Special Commissioners decision affecting the Axa discounted gift trust benefiting the taxpayer has been welcomed by Standard Life.

It found the issue around the lifetime gift made by the late Mrs Bower, who died five years after making the gift to a DGT, related to the age of the settlor at the point she made the gift.

HM Revenue & Customs have said someone aged 90 or over would receive little or no discount since they would be uninsurable.

The executors of the late Mrs Bower did not agree with that position and argued a discount should apply.

Standard Life estate planning specialist Julie Hutchison says: “This decision in favour of a life assurer’s discounted gift plan can be seen as a boost. It is a welcome vote of confidence in the general IHT principles behind discounted gift plans, since the decision notes that there was no question of the settlor being treated as having made a gift with reservation of benefit.

“I note however that the Special Commissioner did apply a different methodology in arriving at a revised discount, which reduced from £7,800 to £4,200, whereas HMRC had argued for a discount of just £250. We will be watching carefully for any HMRC appeal and consequent adjustment to the May 2007 Technical Note which HMRC issued setting out its preferred methodology for DGP, which has become the industry standard. This might have to be revisited and we will be liaising via the ABI to see how this is to be taken forward.”

Recommended

Cream of the crop

I have not read the Jools Holland autobiography although I did buy it for my wife. However, I have never been that impressed by his music. George Farnan TTR Barnes Sunderland

Life Trust signs up 100 distributors in one month

Life Trust Insurance says that 100 distributors have already signed up to provide its longevity income plan just a month after the launch of the company. Baigrie Davies has become the 100th firm to sign terms of business to distribute the product. The income plan is a lump-sum investment designed to help protect consumers from […]

Why CAR will stall

The reason is that if the adviser operates on a commission basis, there is no remuneration to agree upon unless the customer purchases a commission-paying product through the adviser. Thus, the process just becomes commission by another name with the amount being decided between adviser and client as opposed to product provider and adviser. Customer-agreed […]

Alliance & Leicester expects 300 voluntary redundancies

Alliance & Leicester has announced a voluntary redundancy scheme today which could see between 200 to 300 employees leave the lender.But the lender says that the option will only be available to certain “pockets” of the business such as back office areas and sales. It says that no-one from its intermediary centre in Belfast will […]

Europe: why persist with value today?

By Rob Burnett, Neptune’s Head of European Equities The Neptune European Opportunities Fund remains committed to a value bias. We see a broadening array of opportunities in diversified industries at compelling valuations today. The most complicated part of the market is the European banks. We are currently overweight in this sub-sector as many banks are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com