Disclosure of IHT avoidance in relation to trusts

8 December, 2010

On 6 December 2010 HMRC published a summary of responses to its consultation on how the disclosure of tax avoidance schemes (DOTAS) regime may be extended to inheritance tax (IHT) on transfers of property into trust.

 

The government will go ahead with its plans to bring these transfers within DOTAS but, as a result of the consultation, HMRC intends to amend the way the DOTAS regime is administered in relation to IHT.

 

Regulations on the disclosure of IHT will come into effect on 6 April 2011.

 

HMRC has agreed with the suggestion to publish a list of standard tax planning involving transfers to trust which will not be caught by the new regulations.  Deeds of variation are specifically mentioned as not being caught but there is no comment about the setting up of pilot trusts to receive death in service benefit but it is hoped that this will be included in the list of standard tax planning.

 

To view the Summary of Responses click here.
 

Reviewed in 2015