TaxPersonal TaxRevenue loses IHT battle

Revenue loses IHT battle

Homeowners will now be able to use more than one trust to shelter the value of a single property

Homeowners will be able to set up more than one discretionary will trust to
shelter the value of their homes against tax, the Special Commissioners have
ruled.

The trusts are a popular way of avoiding inheritance tax. However, the Inland
Revenue had always maintained that only one could be used in relation to a
single property.

The ruling changes that: ‘Since 1979, the Inland Revenue has reserved the
right to attack solutions where someone has been given the opportunity to live
in a property in these circumstances,’ Mike Warburton of Grant Thornton, is
quoted in the FT as saying.

‘This case is the first time it has been tested and the Revenue has lost,
which will be of comfort to homeowners,’ he said.

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