Paul Davies

This Practice Note explains the term ‘qualifying interest in possession’ (qualifying IIP or QIIP) and its importance for inheritance tax (IHT) purposes. It considers pre-22 March 2006 IIPs, immediate post-death interests (IPDIs), disabled person's interests (DPIs) and transitional serial interests (TSIs).

This Practice Note explains the term ‘relevant property’ and considers other concepts on which the charges to inheritance tax (IHT) on relevant property are based. It also briefly addresses property exempt from the relevant property regime, and what is meant by ‘related settlements’.

This Practice Note considers the expenses incurred by trustees when running a trust, known as trust management expenses (TMEs). This Practice Note includes a discussion of how TMEs are treated in various types of trusts, such as settlor-interested trusts, interest in possession trusts and discretionary trusts. A brief discussion about beneficiaries’ expenses is also included.

This Practice Note explains the requirement for trustees to submit a Trust and Estate Tax Return (form SA900) and provides some commentary on the information to be included in it.

This Practice Note considers the tax treatment of income which has arisen abroad and is payable to UK trustees. It covers the conversion into sterling, exchange rates, FOTRA securities, foreign dividend income, receipts from a non-resident company, stock dividend paid by a non-UK company, double taxation relief, income distributions from offshore funds and offshore income gains.

This Q&A considers what grant application is most appropriate and who may apply for it in a case where a sole executor and sole residuary beneficiary of a Will dies before obtaining a grant of probate.

This Q&A considers the variation of a Will and whether it is possible to amend the terms of a discretionary trust created by the variation in the future to change specific named charity beneficiaries.

This Q&A considers life interest trusts created by Will and what happens where a remainderman predeceases the life tenant.

The Q&A considers the implications of a married couple leaving their shares in a company directly to their children on the first death rather than leaving everything to each other on the first death and to their children on the second death.

This Q&A considers the position where a nil rate band discretionary trust is created using an equitable charge over the testator’s half share of the matrimonial home which is assented from the estate to the surviving spouse and the spouse subsequently wishes to sell the house and buy a replacement.

This Q&A considers what provisions would suggest a dividend is not taxable.

This Q&A considers how to appoint trustees where none have been named in a Will administering life interest assets.

This Q&A considers the position where a gift of a share of a property was made within seven years of death, which now needs to be valued to calculate the IHT liability arising on death.

This Q&A considers if a deed of variation can apply to European assets.

This Q&A considers the availability of principal private residence relief from capital gains tax on a disposal of agricultural property by an individual where there has been a previous claim for a hold-over relief.

This Q&A considers whether a niece by marriage is able to apply to be an administrator of a deceased’s estate if the person died intestate with no spouse or other relatives.

This Q&A considers where a clause in a Will provides that a beneficiary is entitled to the income of the residuary estate and the residue includes a 1/2 share in a property, whether the right extends to the right to enjoy the use and benefit of the property and the right to sell and downsize, in the absence of any specific clause to this effect.

This Q&A considers whether income will be taxable in the UK if a UK resident non-domiciled individual receives a distribution of offshore income outside the UK. The remittance basis and distributions from offshore trusts are also briefly considered.

This Q&A considers BPR relief from inheritance tax and whether it is always necessary to leave business assets in the estate by Will to a separate discretionary trust.

This Q&A considers remuneration clauses in Wills and whether a retired professional can claim under a charging provision in a Will.