The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance considers the rules relating to trusts after 26 January 2006. It does not consider the rules applicable before that date. This guidance covers UK resident trusts only. For information on non-resident trusts, see the UK tax position of non-resident trusts guidance note in the IHT Trusts and Estates module (subscription sensitive).
Although many of the tax advantages of using trusts were removed in recent years, they continue to be popular in succession planning. The potential benefits of using trusts include:
In very broad terms, a private trust will either be 'discretionary' or 'non discretionary'. You will often see a non discretionary trust referred to as a 'life interest' trust or 'interest in possession' trust.
A discretionary trust has the following features:
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