The following Trusts and Inheritance Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
It has long been recognised that special concessions are appropriate where property is held in trust for the benefit of a person who is unable to manage his financial affairs. Broadly, these concessions aim to treat the trust property as if it was owned outright by the individual, instead of applying special trust tax rules to it.
Concessions have been introduced piecemeal with the result that the qualifying definitions and conditions were not consistent and at times contradictory.
Finance Act 2013 introduced amendments across the board to the tax legislation dealing with trusts for disabled persons and other vulnerable beneficiaries.
In summary, the amendments:
The provisions which are affected by these definitions are:
Self-settlement on discretionary trust created on or after 22 March 2006 by a person expected to become a disabled person is a deemed interest in possession.
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