IHT planning is more important than ever

inheritance tax

Government changes mean only bare or absolute trusts now escape the chargeable lifetime transfer tax, so IHT planning is an even more important area of business for advisers, and expertise will be at a premium

The Government's recent changes to the taxation of trusts must have left many advisers feeling very uncertain when explaining the position to clients, but following the publication of the Finance Act 2006 the situation is somewhat clearer. Initially, it appeared that the growth in estate planning business written by financial advisers might be severely curtailed. This concern was unsubstantiated and like previous adverse tax changes the life industry has regrouped and adapted to the new regime. The Finance Act 2006 includes the new legislation and it is important for advisers to understan...