Commentary

I3.756 Possible action where the charge applies

IHT, trusts and estates

I3.756 Possible action where the charge applies

I3.756 Possible action where the charge applies

Where clients have implemented one of the above schemes and are caught by the charge from 6 April 2005 onwards the possibility of remedial action will need to be carefully considered. The appropriate action will depend on the client's circumstances and the precise details of the arrangements entered into; however, some of the following (relatively unpalatable) options will need to be adopted:

  1.  

    (a)     Do nothing. In each case the tax liability under FA 2004, Sch 15 should be weighed against the IHT saving should the planning be successful; there may be situations where the better course will be to pay the income tax. This will depend upon a number of factors including the age and life expectancy of the chargeable person and the chances of the planning succeeding.

  2.  

    (b)     The charge will not apply if a sum is paid in respect of the occupation of the

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