Inheritance Tax U-Turn

George Osborne has scrapped plans to introduce a single settlement nil-rate tax band on multiple life-time gifting trusts.

The Chancellor had previously announced proposals to prevent numerous discretionary trusts being set up to avoid the £325,000 inheritance tax limit. Currently, individuals can apply the nil-rate band to each one.

But in a move hailed in some quarters as a U-turn, he revealed during the 2014 Autumn Statement that “following consultation” the Government will instead tackle this tax avoidance with new rules.

Industry insiders predict a period of uncertainly until details of these rules have been released.

Find out more about life-time gifting trusts by contacting Heritage Will Writing on 02380 879243.