Govt slammed over tax changes to trusts
Lords’ reports examines Finance Bill
Lords’ reports examines Finance Bill
The influential House of Lords Economic Affairs Committee has criticised the
government over the way it handled some of the anti-avoidance measures announced
in the March Budget.
The committee looked at issues concerning the administration,
clarification and simplification of taxation proposals.
On the recent changes to trusts and inheritance tax, the committee said this
was ‘not the way to make tax changes’.
Originally the government said all assets put in trust above the inheritance
tax threshold of £285,000 were subject to a 20% tax charge and an additional 6%
charge on assets above this limit every 10 years.
This was later amended to allow people to leave money in trust to their
spouses without facing a tax charge, and to reduce the tax burden on trusts set
up to pay out after a child reaches 18. A trust paying out at age 25 will be
charged just 4.2%.
The committee rejected government arguments that a consultation would have led
to forestalling and said if such a process had taken place ‘some of the concern
which was expressed following the Budget could have been allayed and the extent
of amendments to the Finance Bill which were tabled could have been reduced’.
‘The government’s intentions on measures such as these should be spelled out
fully, clearly and transparently’, with a transitional period of two years
reconsidered to include people who die without having ‘a reasonable opportunity
to review his or her will’
The numbers you crunch tell a story. Your expertis...
18yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn 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 resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleAs we get closer to the Budget and there is talk of public spending reduction to fund his proposals, we think a cut by the Chancellor to the headline ...
View articleTechnology industry leaders are pressing the government for substantial investment to prepare the next generation with essential digital and AI skills...
View articleUK Chancellor Jeremy Hunt has hinted at the possibility of further tax cuts in the upcoming spring Budget, during his time at the World Economic Forum...
View articleEffective corporate reporting on sustainability will prevent greenwashing issues and deliver more data for better implementation of climate policies R...
View articleCGT receipts have increased by over 100% in the past five years and reached a record level of £18bn in the last year alone, and a further 18% increase...
View articleThe Office for National Statistics reported that inflation in the UK dropped to 7.9% in June Read More...
View articleAccording to the senior Conservative, the Tory party must have one eye on the next general election in deciding the future of the off-payroll working ...
View article23% of business owners having hastened their plans to either sell or wind down their businesses Read More...
View article