Settlement nil rate band. Confusion

Settlement nil rate band. Confusion

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I had imagined that the proposed single settlement nil rate band would apply to all transfers into trust by an individual not only for the purposes of the trustees charges on relevant property, but for the purposes of the entry charge too.  Hence the seven year rule would fall by the wayside for gifts into trust.

However, articles have emerged which suggest this is not the case.and that the ability to keep putting assets into trusts every seven years remains. Moreover, it has been further suggested that the new rules will lead to a resurgence of trusts in wills in cases where no lifetime trust has been set up.

I imagine that the latter is correct as the Revenue suggest the new proposals will be revenue neutral over five years.  But can we really expect the facility to put £325,000 into trust every seven years to be retained.  Surely it will be next in line - particularly with the possibility of a Labour government or left leaning coalition in twelve months time. It may even be that the apparent light touch as regards the current changes merely reflects the fact that a reform of inheritance tax is in the offing.

Thoughts?

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By dropoutguy
25th Jun 2014 07:14

Any thoughts would be welcomed.

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By dropoutguy
01st Jul 2014 08:21

A final

shameless bump for this topic

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