The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
The special category of ‘trusts for bereaved minors’ (TBM) was introduced by Finance Act 2006 to provide IHT concessions for trusts in favour of children with a deceased parent. Before 22 March 2006, such trusts would have been included within the more wide-ranging accumulation and maintenance (A&M) regime, but no new A&M trusts can be created after that date. See the Accumulation and maintenance trusts guidance note. TBMs have a more limited application. Except in rare circumstances explained below, they are created on the death of a parent for the benefit of his or her minor children.
Typically, trustees have the power to accumulate income and to apply capital for the benefit of the beneficiary. Therefore, they are of a discretionary nature, although it is also possible for TBM beneficiaries to have an interest in possession.
A bereaved minor is a person who is under the age of 18 years and at least one of whose parents has died.
For these purposes, ‘parent’ includes a step-parent or a person with parental responsibility.
Property that is held in a trust for bereaved minors is not subject to the relevant property regime of principal charges and exit charges.
There is no inheritance tax charge as a result of:
the bereaved minor attaining the age of 18 or becoming absolutely entitled to the trust property under that age
the death of the bereaved minor under the age of 18
the trust property being paid or applied for the benefit of the bereaved minor
IHTA 1984, s 71B(2)
There is a trust for a bereaved minor where property is
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
‘Hold-over’ relief allows for the deferral of a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset for the transferee for the purpose of a future disposal is reduced by an amount equal to the gain
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
IntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeWithholding tax may be reduced under double tax treaties (DTT) or European directives, both of which may be subject to making a formal claim.This guidance note outlines the rules for UK withholding tax, and
Normal due dateIndividuals are required to pay any outstanding income tax and Class 4 National Insurance, Class 2 National Insurance, and capital gains tax due for the tax year by 31 January following the end of the tax year (ie 31 January 2021 for the 2019/20 tax year). From 6 April 2020, UK
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.