The new Inheritance Tax Residence Nil Rate Band

The Summer Budget Finance Bill (the Finance (No. 2) Bill 2015) has now been published and it contains the draft legislation to implement the new Inheritance Tax (IHT) Residence Nil Rate Band (RNRB).  So let’s take a look at the detail of what’s involved.

Budget bonus: Briefing notes on changes to non-dom taxation and additional IHT nil rate band

Below you will find links to some client friendly notes on the proposed non-dom taxation changes and the introduction of the new additional Main Residence nil rate band for Inheritance Tax, all announced in last Wednesday's Summer Budget. 


No doubt these significant proposals will be the subject of future blogs, so watch this space!


http://www.fladgate.com/nondomtax/

www.fladgate.com/ihtnondoms

http://www.fladgate.com/nilrateband2015

Trustbusters

Most English trusts these days specify a ‘Trust Period’ of no more than 125 years.  In practice, this means that someone must have a vested interest in the trust assets (whether that’s vested in possession (i.e. an immediate right to ‘current enjoyment’) or vested in interest (an immediate right to ‘future enjoyment’)) within 125 years. 

Sometimes trusts outstay their welcome, though.  If you have a client desperate to find a way to end a trust, don’t assume there is nothing that can be done.  It is sometimes possible to end a trust without needing the agreement of the trustees (which may not be forthcoming).  Here’s how.