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.

Related Articles

Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

Personal Tax Inheritance tax is 'unfit for modern society' and should be abolished, says think tank

3w Alia Shoaib, Reporter
Rent-a-room relief – the survey says…

Personal Tax Rent-a-room relief – the survey says…

2m Helen Thornley, ATT Technical Officer
What should the OTS prioritise in its review of inheritance tax?

Personal Tax What should the OTS prioritise in its review of inheritance tax?

4m Alia Shoaib, Reporter
LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5m Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

6m Emma Smith, Managing Editor
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

7m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

8m Emma Rawson, ATT Technical Officer
Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

9m Alia Shoaib, Reporter