A report published by the Telegraph says that many people who established trusts as a way of limiting inheritance tax (IHT) liabilities risk losing out on a valuable new tax perk unless they rearrange their affairs. From 6 April, the new "main resident nil-rate band" for IHT takes effect, and trusts are explicitly excluded. Lawyers have warned that hundreds of thousands of people could miss out completely unless they urgently review their wills.
By not understanding the rules relating to IHT, families could unnecessarily end up paying tens or even hundreds of thousands of pounds in tax.
Through careful planning, IHT can be mitigated. We do however recommend that planning starts as early as possible.
Our Beavis Morgan tax experts are available to guide you and advise on the available strategies. If you would like to know more, please contact Barrie Dunning or your usual Beavis Morgan Partner.