Disabled exempted from tax on trusts
Brown back tracks on new tax rules
As part of a series of amendments to proposed tax rules on trusts, disabled
people will be exempt from a new 20% inheritance tax on gifts paid into their
trusts, the Treasury has decided.
The exemption will also apply to people with degenerative diseases, including
those suffering from Alzheimer’s.
The amendments are to be made to proposals which are part of a wider plan to
net more taxes from trusts that people set up for their spouses or children.
Pressure from accountants and lawyers who claimed the plans would have forced
millions of families to rewrite their wills and in recent weeks resulted in the
chancellor rethinking his plans.