One of the bigger surprises in this year’s Autumn
Statement was the news that the much consulted upon new ‘Settlement Nil Rate
Band’ has been dropped.
One of the reasons for proposing a Settlement Nil Rate Band
was to make the use of multiple trusts less attractive for Inheritance Tax (IHT) mitigation purposes. Each trust would no longer have its own IHT
nil rate band to set off against the periodic charges to IHT, such as the ten
year anniversary charge and any exit charges, that it may face during its existence.
Now, with the publication of draft clauses for the Finance
Bill 2015 last week, we learn that, in certain situations, there remains a
future for planning involving multiple trusts after all.