Brown u-turns on trusts

The government has performed a U-turn on its trusts plans.

The Treasury has tabled a series of amendments to the Finance Bill, which is
in committee stage. The effect was desribed as returning the tax treatment of
trusts for children or spouses to a position similar that before the Budget.

Stephen Pallister, a member of the Law Society’s wills and trust committee,
was quoted saying: ‘Millions of people would have had to take expensive tax
advice or rewrite their wills. This amounts to a massive climbdown.’

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