Advisers fume over trust changes

Advisers fume over trust changes

Primarolo claim that very few affected by the changes challenged by the profession

Advisers and tax lawyers have reacted angrily to suggestions from paymaster
general Dawn Primarolo that the government’s clampdown on trusts in last week’s
Budget would only affect a small number of people.

‘Virtually every will in the country that has been prepared on legal advice
will need to be rewritten,’ Edward Nugee, QC, head of Wilberforce Chambers,
wrote in a letter to The Times today.

The move affects no more than ‘a tiny fraction of the wealthiest top one per
cent of the population’, Primarolo had insisted.

Advisers had initially suggested as many as 100,000 families would be
affected by the move, which adds new inheritance tax charges to certain trusts
in wide usage.

One aspect of the move that has attracted particular attention is the
suggestion that trusts where the child or grandchild beneficiary takes control
at age 18 will have tax advantages to those where that does not occur.

Advisers have pointed out that transferring the trusts to 18-year-olds does
not always make sense.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource