The use of trusts to avoid tax is virtually extinct, say advisers.
The closure of loopholes, including halting CGT exemption for non-doms
disposing of UK assets held within a trust, means tax advisers were loathe to
set up trusts for clients looking to minimise their tax bill, reported the
‘I think you’re going to see very, very few trusts for UK-based people. The
only real reason to take one out now is to create assets outside your estate for
inheritance tax purposes,’ said KPMG partner David Kilshaw.
The rule change for non-doms disposing of UK assets has seen UK properties
owned through offshore trusts put up for sale before the change comes into
effect in April.
Grant Thornton partner Mike Warburton said that the ‘super-rich’ would still
use trusts for long-term investing.
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The firm says that the U-turn 'does not alter the need for a fundamental review of the way we tax work' and that the current tax system is in need of reform
Legislation on the NICs changes to be brought forward in the autumn following publication of 'the full effects of the changes to Class 2 and Class 4' in the summer
Following chancellor Philip Hammond’s Spring Budget speech, we explore the key takeaways for businesses and individuals