Trust Taxation 3rd ed

Subjects:

Taxation, Equity and Trusts

Contents:

PART I: GENERAL

What is a trust; types of trust; sham trusts; Hastings Bass and mistake; perpetuity and accumulation issues; using income to pay capital expenses – the UK dimension

NEW Categorisation of foreign entities and trusts: purpose trusts, foundations, grantor trusts – the international dimension.

Residence and domicile status of individuals

NEW Residence of trusts and companies

NEW Taxation of non residents and foreign domiciliaries - basic principles

PART II: INCOME TAX

NEW Income Tax of non-settlor interested trusts – UK resident

NEW Income Tax and capital gains tax issues arising in relation to settlor -interested trusts – UK resident

NEW Income tax of non-resident trusts. The foreign dimension.

PART III: CAPITAL GAINS TAX

CGT definitions

CGT on creation of a settlement

Actual disposals

Deemed disposals

NEW Roll-over relief

NEW Entrepreneurs’ relief

NEW Incorporation relief

NEW EIS relief

NEW Share for share exchanges; earn outs; share buy backs and priority of reliefs

CGT hold-over relief

Offshore Trusts – CGT position for foreign and UK domiciliaries

CGT on the disposal of a beneficial interest

Loss relief provisions

PART IV: INHERITANCE TAX

IHT and reservation of benefit: an introduction

The IHT rules: an overview

IHT Definitions and Classifications

Creation of Settlements

NEW Tax treatment of qualifying and non qualifying interest in possession trusts and reversionary interests including valuation, issues, leases, reliefs Melville schemes and sales

When IHT is charged on interest in possession trusts (including transitional relief).

Immediate post death interests and other qualifying interests in possession after FA 2006

Taxation of Relevant Property Settlements

Accumulation and Maintenance Trusts

Excluded property settlements – IHT and the foreign dimension

Liabilities

Reservation of benefit

Pre-owned assets

PART V: SPECIALIST TOPICS

Trusts for Minors and Under 25s; Trusts for Vulnerable and disabled Beneficiaries

Reverter to settlor trusts

Will drafting; maximising transferable nil rate bands and other reliefs

Deeds of variation, disclaimers and other post death rearrangements; trusts and claims under the Inheritance (Provision for Family and Other Dependants) Act 1975

NEW Tax issues for personal representatives; excepted estates and reporting requirements

NEW Pilot Trusts

Bare trusts

Trusts and houses – principal private residence relief; foreign domiciliaries acquiring houses

NEW Chattel schemes

Business property relief; Farms: agricultural property relief

Life policies and other life products held in trust

NEW Pension arrangements and trusts

Employee benefit trusts Trusts & Divorce; prenuptial agreements and trusts; protecting an estate from Inheritance Act claims; second marriages

Stamp duty and SDLT

NEW Partnership structures.

NEW Offshore funds

NEW Taxation of non-UK resident companies

NEW Maintenance Trusts

Disclosure rules for IHT, CGT and income tax; new reporting regime for excepted transfers and relevant property settlements; tax avoidance schemes generally – a new approach

NEW Checklist for private clients: tax planning and drafting trusts EC

APPENDICES

I PRECEDENTS

PART I: SETTLEMENTS

PART II: WILL TRUSTS AND VARIATIONS

PART III: SUBSIDIARY DOCUMENTS

II. MISCELLANEOUS MATERIAL DELIVERED

III. COMPUTATIONS

Trust Taxation covers the taxation of UK resident and non-resident trusts explaining in detail the income tax, capital gains tax and inheritance tax treatment of the various different types of trusts. The book covers the tax consequences of creating and ending a trust, as well as the tax issues to consider during the lifetime of each type of trust and on distributions to beneficiaries.

Part 1 contains an overview of trust law including recent case law on Hastings Bass, the categorisation of foreign entities, the new domicile and residence proposals and case law on residence and domicile generally. It also summaries the tax rules for foreign domiciliaries.

Parts 2 to 4 explain the relevant legislation in detail as it relates to trusts, including discussion of entrepreneurs' relief, rollover relief, reservation of benefit, excluded property and relevant property trusts.

Part 5 deals with special situations, including the family home, chattels, employee benefit trusts, pilot trusts, bare trusts, disabled trusts, will drafting, variations, business property relief and agricultural property relief, divorce and trusts.

Appendix 1 contains precedents that cross refer to the main text

Appendices 2 and 3 contain miscellaneous Revenue material and computations.

What you will find in the new edition:-

• An overview of the basic principles of a trust
• Explanations of the types of trusts and advice on the most appropriate ones to use in varying situations
• Specific and common scenarios to explain how the taxes are applied
• How past and present schemes worked and what legislation has been introduced to counteract them
• Specialist areas such as Bare Trusts, Reverter to Settlor Trusts and Trusts for minors and older children
• Illustrations for Inheritance Tax calculations