Net tightens around IHT avoidance

tax

The Government plans to tighten the rules on IHT avoidance but with early planning there are still many options for mitigating this tax burden

The pre-Budget report in December set out a series of measures designed to tackle tax fraud and avoidance. These included provisions to counter inheritance tax (IHT) avoidance, by preventing investors from using second-hand interests in foreign trusts. Margaret Jago, technical manager for Scottish Equitable International explains what the measures are and what alternatives you can use to help mitigate your clients' tax burdens. How will IHT avoidance measures set out in the pre-Budget hinder second-hand interests in foreign trusts? These were previously exempt from tax if they satisfied t...