Deemed domicile changes - Trust protections

7 Dec 2020

Questions and suggested answers were prepared by committee members of the CIOT, STEP, ICAEW, and the Law Society to highlight and consider areas of uncertainty in the statutory provisions for trust protections, mixed fund cleansing, rebasing and the extension of IHT to overseas property representing UK residential property interests as introduced by Finance (No) Act 2017 with effect from 6 April 2017. The questions and the draft suggested answers were sent to HMRC for comment.

HMRC commented on the mixed fund cleansing Q&As, IHT residential property and on the CGT foreign capital losses. The current versions are below:

Q&As Mixed fund cleansing Q&As Rebasing and the adjustments to the CGT foreign capital losses election Q&As The extension of IHT to overseas property representing UK residential property interests

In addition notes have been prepared by committee members to highlight practical issues and uncertainties in the statutory provisions for trust protections as introduced by Finance (No 2) Act 2017 and for the Finance Act 2018 Schedule 10 (Settlements: Anti‚ avoidance etc.) provisions.

Trust protections note Finance Act 2018 Schedule 10

These documents are also published or are in the course of publication as TAXguides by the ICAEW Tax Faculty.