Succession Taxes


HMT published a call for evidence following the Budget announcement that the government “would review the Enterprise Management Incentives (EMI) scheme to ensure it provides support for high-growth companies to recruit and retain the best talent so they can scale up effectively, and examine whether more companies should be able to access the scheme.”

The Chartered Institute of Taxation (CIOT) is calling for specific reforms to the taxation of trusts despite the Government pulling back from a wholesale review of this area.

HMRC have provided us, as members of the Trust and Estates Agents Advisory Group, with an update on operational procedures relating to Clearance requests and IHT calculations.

The 5th Anti-Money Laundering Directive (5MLD) extends the requirement to register on the Trust Registration Service (TRS) to many non-tax paying trusts that are currently excluded. Following a regular meeting with HMRC on 11 March attended by CIOT and ATT representatives on the implementation of the new version of the TRS, HMRC have announced that:

CIOT, together with other professional bodies, has been discussing with HMRC the availability of the inheritance tax (IHT) spouse exemption in relation to assets held in a trust that are treated as beneficially owned by the settlor as a result of the reservation of benefit rules. 

The House of Commons Treasury Committee has published its much-awaited report on Tax after Coronavirus, the most ambitious parliamentary report ever produced on tax reform.

A Conservative peer has suggested reforms to legislation and taxation relating to rural landlords and the letting of land. Opening a debate which lasted just over an hour, Baroness Rock said the tenanted sector of agriculture is adversely affected by short-term thinking, but the Tenant Farmers Association (TFA) has put forward tax changes to address this, and the Government should look at these.

We are re-issuing for the benefit of members and the public correspondence between our Succession Taxes Committee and HMRC during 2010 and 2011.

CIOT committee member Megan Saksida writes a guest blog on the merits of using trusts and asks why there has been a decline in their use

If the government chooses to raise taxes as a response to the coronavirus pandemic, it should go for a one-off wealth tax, says a commission of experts.