The Finance Bill will amend excluded and settled property rules to close an avoidance scheme involving interests in offshore trusts.
The Finance Bill will amend excluded and settled property rules to close an avoidance scheme involving interests in offshore trusts.
‘Where an individual, domiciled in the UK, acquires an interest in settled excluded property which, as a result of arrangements concerned with that acquisition, gives rise to a reduction in the value of that individual’s estate, the property will cease to be excluded property and a charge to IHT will arise,’ HMRC said.
The changes, which will have effect ‘on or after 21 March 2012’, will apply to arrangements that ‘exploit the excluded property rules by converting UK assets to ones that are excluded from the IHT charge and do not give rise to a transfer of value when that conversion occurs’.
The Finance Bill will amend excluded and settled property rules to close an avoidance scheme involving interests in offshore trusts.
The Finance Bill will amend excluded and settled property rules to close an avoidance scheme involving interests in offshore trusts.
‘Where an individual, domiciled in the UK, acquires an interest in settled excluded property which, as a result of arrangements concerned with that acquisition, gives rise to a reduction in the value of that individual’s estate, the property will cease to be excluded property and a charge to IHT will arise,’ HMRC said.
The changes, which will have effect ‘on or after 21 March 2012’, will apply to arrangements that ‘exploit the excluded property rules by converting UK assets to ones that are excluded from the IHT charge and do not give rise to a transfer of value when that conversion occurs’.
