TaxAdministrationDisclosure rules could halt IHT avoidance schemes

Disclosure rules could halt IHT avoidance schemes

From April, HMRC will require families to disclose property placed in trust as a means of avoiding inheritance tax

NEW DISCLOSURE REQUIREMENTS coming into force in April next year could put an end to families trying to avoid inheritance tax (IHT) by placing properties into trust.

Under current rules, families cannot escape paying IHT by giving away property if they continue to live in it, but some schemes have worked around this by placing the property in trust with children as beneficiaries.

From April, such schemes will have to be disclosed to HMRC, which could result in them being shut down.

Families that have already placed property in trust are unlikely to be affected, as there are no requirements to disclose existing schemes.

Tens of millions of pounds worth of property could already have been sheltered in this way, according to the Financial Times.

 

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