Trusts - what you need to know
25th July 2017
The use of trusts for tax planning has been continually restricted by HMRC over the last 20-30 years as they perceive that they are mainly used to avoid tax by what they consider to be unfair means.
However there are still uses for trusts which are not frowned on by HMRC such as;
- routing grand-parental gifts to children to use the childrens' personal allowances
- passing on investment assets to the next generation without suffering a capital gains tax charge
- returning capital gains tax relief on homes acquired for relatives without passing over full ownership to them
In addition trusts have a part to play in general planning where wealthy individuals want to give assets away without parting with control of those assets, although in these cases, care must be taken to ensure that the miriad of tax rules are navigated successfully.
If you would like to discuss your position in more detail, please contact on our team today.