ABI RESPONSE TO HMRC CONSULTATION ON INHERITANCE TAX: SIMPLIFYING CHARGES ON TRUSTS THE NEXT STAGE.
|
|
- Milo Price
- 8 years ago
- Views:
Transcription
1 ABI RESPONSE TO HMRC CONSULTATION ON INHERITANCE TAX: SIMPLIFYING CHARGES ON TRUSTS THE NEXT STAGE. The UK Insurance Industry The UK insurance industry is the third largest in the world and the largest in Europe. It is a vital part of the UK economy, managing investments amounting to 26% of the UK s total net worth and contributing 10.4 billion in taxes to the Government. Employing over 290,000 people in the UK alone, the insurance industry is also one of this country s major exporters, with 28% of its net premium income coming from overseas business. Insurance helps individuals and businesses protect themselves against the everyday risks they face, enabling people to own homes, travel overseas, provide for a financially secure future and run businesses. Insurance underpins a healthy and prosperous society, enabling businesses and individuals to thrive, safe in the knowledge that problems can be handled and risks carefully managed. Every day, our members pay out 147 million in benefits to pensioners and long-term savers as well as 60 million in general insurance claims. The ABI The Association of British Insurers (ABI) is the voice of insurance, representing the general insurance, protection, investment and long-term savings industry. It was formed in 1985 to represent the whole of the industry and today has over 300 members, accounting for some 90% of premiums in the UK. The ABI s role is to: Be the voice of the UK insurance industry, leading debate and speaking up for insurers. Represent the UK insurance industry to government, regulators and policy makers in the UK, EU and internationally, driving effective public policy and regulation. Advocate high standards of customer service within the industry and provide useful information to the public about insurance. Promote the benefits of insurance to the government, regulators, policy makers and the public. Page 1
2 INTRODUCTION The ABI welcomes the opportunity to comment on this consultation. We also very much welcome HMRC s proactive approach in arranging face to face meetings with stakeholders. For our part, we found the recent meeting with HMRC open and constructive and believe that this sort of approach is key to improving the quality and clarity of tax legislation. But we are concerned that the proposals in their current form have a disproportionate and detrimental effect on trusts created for family protection and look forward to working with you to finding a fairer solution for these taxpayers. GENERAL COMMENTS We accept that the proposed changes, with the intention of simplifying the inheritance tax (IHT) charges on relevant property trusts, are targeted primarily at trustees who have the obligation to report chargeable events and pay any tax due. Also, it is trustees who will have to pay any fees for advice relating to those obligations. However, although insurers generally have no practical involvement in that, many will produce guidance for trustees who use their specimen trust documentation. However, the latest consultation document introduces proposals that would have a detrimental impact on life policy trusts and some pension death benefit trusts, and indeed we believe could be disproportionately detrimental to these. The suggestions are included in the section Simplifying the calculation of IHT trust charges including the consideration of charges on certain death in service pension schemes. We have no comment to make regarding the other two sections in the consultation. RESPONSES TO QUESTIONS Question 1: Do these proposals meet the objective of reducing complexity and administrative burdens and in what way(s)? Response: Ignoring previous lifetime transfers and non-relevant property would be a welcome simplification. It would save a great deal of time and effort trying to establish facts from the 7 year period before a trust was created. Similarly using a universal 6% tax rate would undoubtedly reduce the complexity in calculating the tax due as the current regime requires a number of involved calculations to be performed to determine the rate of tax. However there is a risk that splitting the NRB between a number of trusts could increase complexity and whatever methodology is used it Page 2
3 is likely to raise a number of issues of detail (see below). We would be particularly concerned if the proposals were to go forward on the basis suggested as we believe this would produce an unfair outcome. Question 2: Does a single rate of 6% present any difficulties, particularly for smaller trusts? Response: Although not directly our concern (see general comments above), and we make no comment on the rate itself, it would seem likely that it will save trustees professional fees. However, although the examples used in the consultation document suggest that this might result in lower tax bills, this will not always be the case and we are not sure where the balance will lie in practice. In practice many smaller trusts may not engage a professional adviser to file their tax return and a HMRC calculator would particularly help them. Question 3: How much time would the simplified method save trustees and practitioners, on average per trust? Not in a position to comment. Question 4: Will there be significant costs to trustees and practitioners familiarising themselves with the new system and if so can you quantify these? We are not really in a position to comment but as a general point would suggest any proposal which involves apportioning the NRB runs the risk of increasing complexity rather than achieving simplicity. Under current rules, many small trusts will not be filing IHT returns so their costs will increase if they have to engage professional advisers to file their returns. Question 5: Do HMRC s proposals in paragraphs on the way in which the nil-rate band should be split for ten year and exit charges provide the right balance between fairness and the risk of manipulation? The consultation document states that Splitting the nil-rate band is integral to the proposals to simplify the calculations and will allow other simplification measures such as ignoring the settlor s previous lifetime transfers and any non-relevant property within the trust assets. The split would be amongst all the relevant property trusts the settlor had made. Two methods of splitting the NRB are mentioned i.e. equally amongst the trusts or by apportioning it between the number of trusts in existence. The examples within the consultation document all use the equal split method, and it is unclear on what basis an apportionment might be made or how it might operate in practice. Also, the examples suggest that any advantage or disadvantage to either HMRC or the taxpayer would be relatively small. Page 3
4 However, the suggestion of splitting the NRB between all of a settlor s relevant property trusts could greatly dilute the available NRB and thus increase the amount that would suffer tax at the 6% rate. Life Cover Policies Many trusts are set up for life cover policies, written on the settlor s life, and wouldn t typically hold assets with a tangible value. There would only be any real value in the trust following the settlor s death. However, those who hold such policies in a trust could be materially disadvantaged by this proposal. These policies are designed to provide financial security for family members in the event of the death of a wage earner. The proceeds from such a policy replace the income lost on the death or disability of the wage earner, and can help the remaining family members to go on without having to rely on state benefits. It would be irrational for Government to arrange the tax rules so as to penalise those seeking to protect their families in that way. It is not uncommon for wage earners to have more than one such policy, since the need for protection will grow over time with the increase in earnings, and indeed with the increase in the number of children. However, if the NRB is split equally these trusts will take up a significant proportion of the NRB. Example Mr A has four relevant property trusts. Three contain protection life insurance policies taken out over the last 5 years and these have no current market value, although the total sum insured is 500,000. He inherits some money from his father s estate and decides to set up a trust with 100,000 to help pay for his three children s future university education. At the 10 year anniversary there will be no tax to pay on the life policy trusts as they have no value. However, his educational trust, which in the meantime has increased in value to 150,000, would no longer have a full NRB (which would have meant no tax to pay). Instead it would have a NRB of 81,250 (assuming no increase in the NRB) with a resulting tax charge of 4,125 ( 68,750@6%). Mr A could of course have chosen not to write his life policies under trust, thus leaving the full NRB for the educational trust. However, if he were to die the 500,000 sums insured would form part of his estate and be subject to IHT. In the absence of any available exemption, at least part of the money designed to give his children financial security could then be taken in tax. Page 4
5 Pension spousal bypass trusts will also be affected by the proposed changes. But the context is quite different to aggressive tax planning arrangements using pilot trusts. A major motive is the ability to control who receives the death benefits rather than IHT or tax planning. The issues are complex and need to be considered together with the pensions legislation. Therefore, we have decided not to include a more detailed explanation and examples at this stage and would welcome the opportunity to discuss this further with HMRC to find a solution which gives a fair result for these taxpayers. Question 6: Are there any other ways that the nil-rate band could be split that would not risk a loss to the Exchequer? Response: For the reasons above, we believe that pure protection policy trusts should be excluded from the proposed regime. Perhaps this could be achieved by excluding policies which cannot acquire a surrender or maturity value? A relevant property trust containing only a pure protection life policy would not be counted when splitting the NRB, so would not impact on the tax position of a trust containing valuable assets. However, that would presumably also mean that a protection life policy trust would not benefit from any NRB at a 10 year anniversary. The only time that that would cause an issue would be where the life insured died (or perhaps became terminally ill) shortly before the 10 year anniversary, such that the trustees were unable to distribute the cash before the anniversary. A possible solution would be to extend the 2 year tax exemption that currently applies to registered pension scheme trusts following the death of the member to pure protection life policy trusts. Thus, regardless of when death occurred the trustees would have two years in which to distribute the monies without incurring an inheritance tax charge. Question 7: Would applying the new rules from a set date cause trustees and practitioners any difficulties? Response: It would make little difference to us when any changes were made. However, we should be grateful for sufficient time to update the content of any relevant literature. Question 8: In what other way could the new rules be implemented? Response: Amending the rules around related transactions We believe there is scope to improve the operation of the legislation by amending the rules around related transactions. Currently, settlements are related if they are created by the same settlor on the same day (s62 IHTA 1984). At the 10 year anniversary, the historic value Page 5
6 of any related settlement is brought into charge. However, if the settlements are not related, because for example they are created on different days, each may benefit from its own, separate NRB. The proposal to split the NRB amongst trusts would effectively put an end to this. One possibility might be to keep this facility for non-related settlements, but increase the timescale from those created on the same day to settlements created within X years. HMRC s has informally suggested a value for X of seven years. However, we believe that that is too long. Many people will take out additional life insurance when a baby is born, and the time between babies is typically much less than seven years indeed the UK average is around 3 years 1. We therefore suggest that two to three years would be more appropriate while still providing ample protection for HMRC. Disallowing NRB at 10 year anniversary Another idea suggested by HMRC was to disallow any NRB at the 10 year anniversary, but then reduce the tax rate. (We assume the rate chosen would be such as to produce a tax neutral result.) However, whilst that, together with the disregarding of historic values, would simplify the process, it would also mean that all trusts that held a value would incur a tax charge, and hence have to file a return. Therefore some sort of de minimis rule would be required - e.g. no tax to pay if the charge calculated is less than X. And this would then take us back to the question of fragmentation. HMRC calculate the tax charge Regardless of any other changes made, it was suggested that HMRC might offer to calculate the tax charge for trustees if they supplied all of the relevant information. This would be akin to the facility that exists with self assessment. Clearly trustees could still take their own professional advice if they wished, but we believe this could be a beneficial option to nonprofessional trustees who might otherwise incur fees that are in excess of the tax due. Other comments Issues with splitting NRB irrespective of methodology adopted As noted in our response to question 1, whatever approach is adopted to splitting the NRB, there are issues of detail which will have to be addressed. For instance: How would the NRB fragmentation work if the settlor had died? How would trustees know how many trusts a settlor had created (and does this bring with it potential data protection issues?) 1 'Characteristics of the Mother 2, England and Wales, 2011' by the ONS. Page 6
7 Questions 9-14 As noted above we have no responses to the second and third sections of the consultation paper. Page 7
Inheritance Tax: Simplifying Charges on Trusts the next stage
Inheritance Tax: Simplifying Charges on Trusts the next stage Consultation document Publication date: 31 May 2013 Closing date for comments: 23 August 2013 Subject of this consultation: Scope of this consultation:
More informationAAT RESPONSE TO THE HMRC CONSULTATION ON INHERITANCE TAX: A FAIRER WAY OF CALCULATING TRUST CHARGES
AAT RESPONSE TO THE HMRC CONSULTATION ON INHERITANCE TAX: A FAIRER WAY OF CALCULATING TRUST CHARGES 1 INTRODUCTION 1.1 The Association of Accounting Technicians (AAT) is pleased to comment on the proposals
More informationFinance Bill 2015: Inheritance tax taxation of relevant property trusts
Finance Bill 2015: Inheritance tax taxation of relevant property trusts Introduction STEP is the worldwide professional association for those advising families across generations. We help people understand
More informationABI RESPONSE TO HMRC / HMT CONSULTATION ON PENSIONS TAX RELIEF INDIVIDUAL PROTECTION FROM THE LIFETIME ALLOWANCE CHARGE
ABI RESPONSE TO HMRC / HMT CONSULTATION ON PENSIONS TAX RELIEF INDIVIDUAL PROTECTION FROM THE LIFETIME ALLOWANCE CHARGE The UK Insurance Industry The UK insurance industry is the third largest in the world
More informationLife Assurance Policies
clarityresearch Life Assurance Policies Summary 1. Some life assurance policies are not taken out as a means of purely providing life insurance (for this subject, please see the Research Notes in the Protection
More informationFor adviser use only. Your Guide to Relevant Life Policies
For adviser use only Your Guide to Relevant Life Policies Your guide to relevant life policies Welcome to the Scottish Provident guide to relevant life policies. In this guide you will find all the information
More informationIntermediary guide to trusts
Intermediary guide to trusts Important: The information in this guide is based on our understanding of current United Kingdom law and HM Revenue & Customs practice, which is subject to change. We cannot
More informationGuide to Relevant Life Policy and Trust
Guide to Relevant Life Policy and Trust Relevant Life Policies are a tax-efficient way of providing death-in-service benefits on an individual basis to company directors and other company employees, no
More informationRELEVANT TECHNICAL LIFE GUIDE PLAN TO THE RELEVANT LIFE PLAN RELEVANT LIFE PLAN TECHNICAL GUIDE.
RELEVANT TECHNICAL LIFE GUIDE PLAN TO THE RELEVANT LIFE PLAN 1 RELEVANT LIFE PLAN TECHNICAL GUIDE. 2 TECHNICAL GUIDE TO THE RELEVANT LIFE PLAN ABOUT THIS GUIDE This guide has been designed for financial
More informationDiscounted Gift Trust. Guide for financial advisers
Discounted Gift Trust Guide for financial advisers Introduction Usually, where an individual gifts an asset into a trust and subsequently they continue to retain access or obtain a benefit from it, it
More informationIMPLEMENTING THE RESTRICTION OF PENSIONS TAX RELIEF: NAPF SUBMISSION TO THE HMT/HMRC CONSULTATION
IMPLEMENTING THE RESTRICTION OF PENSIONS TAX RELIEF: NAPF SUBMISSION TO THE HMT/HMRC CONSULTATION Executive Summary The NAPF welcomes the Coalition Government s decision to adopt a tax regime based principally
More informationADDITIONAL SUBMISSION FROM THE ASSOCIATION OF BRITISH INSURERS
ADDITIONAL SUBMISSION FROM THE ASSOCIATION OF BRITISH INSURERS Competition Commission investigation on the market of privately funded healthcare services March 2013 The UK Insurance Industry 1.1 The UK
More informationABI response to the FSA s consultation on The FCA s use of temporary product intervention rules (CP12/35)
ABI response to the FSA s consultation on The FCA s use of temporary product intervention rules (CP12/35) The UK Insurance Industry 1. The UK insurance industry is the third largest in the world and the
More informationABI response to the Consultation on the abolition of 36 reliefs Consultation Document recommendation to ABOLISH LIFE ASSURANCE PREMIUM RELIEF
ABI response to the Consultation on the abolition of 36 reliefs Consultation Document recommendation to ABOLISH LIFE ASSURANCE PREMIUM RELIEF EXECUTIVE SUMMARY The ABI fully supports the Government s objective
More informationFor financial advisers only Relevant life technical guide
For financial advisers only Relevant life technical guide Please note this communication is for financial advisers only. It mustn t be distributed to, or relied on by, customers. About this guide We ve
More informationRunning your trust A trustee guide to our Flexible Trust
Running your trust A trustee guide to our Flexible Trust Contents The purpose of this guide 3 The duties and powers of 4 the trustees Power of Appointment Named (Schedule B) Beneficiaries Power to appoint
More informationPart surrenders and part assignments of life insurance policies
Part surrenders and part assignments of life insurance policies Consultation document Publication date: 20 April 2016 Closing date for comments: 13 July 2016 Subject of this consultation: Scope of this
More informationHelping you understand inheritance tax planning. We ll help you get there
Helping you understand inheritance tax planning investments pensions PROTECTION We ll help you get there As Benjamin Franklin said, In this world nothing is certain but death and taxes. Inheritance tax
More informationBusiness Protection Guide To Corporate Share Purchase
Business Protection Guide To Corporate Share Purchase This technical guide details how corporate share purchase works, what situations it may be used in as well as suitable solutions, and the impact and
More informationA Guide to the Discounted Gift Trust
A Guide to the Discounted Gift Trust > Contents Inheritance tax planning 04 What can the Discounted Gift Trust do for you? 05 Choice of trusts and inheritance tax 06 How does the trust work? 07 Income
More informationyour uide to a Royal Skandia Excluded Property
PENSIONS INVESTMENTS your uide to a Royal Skandia Excluded Property Trust for non-uk domiciles movin permanently to or currently livin in the UK not for use in Hon Kon and Sin apore. enablin intelli ent
More informationPROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK.
PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK. Technical Guide Flexible Trust Deed 2 PROTECTION GIFT TRUSTS FLEXIBLE TRUST PACK INTRODUCTION This guide has been written to explain what a Flexible Trust is,
More informationComments of the STEP UK Technical Committee on the draft legislation on trusts with vulnerable beneficiaries issued on 17 January 2013
Comments of the STEP UK Technical Committee on the draft legislation on trusts with vulnerable beneficiaries issued on 17 January 2013 STEP is the worldwide professional association for practitioners dealing
More informationOptions for improving the Retail Prices Index
Options for improving the Retail Prices Index The ABI s Response to the National Statistician s consultation The UK Insurance Industry The UK insurance industry is the third largest in the world and the
More informationNEW INHERITANCE TAX RULES
NEW INHERITANCE TAX RULES The chancellor, Gordon Brown has revised his proposed Budget measures in respect of trusts, following protests by the life assurance industry and MPs amongst others. HMRC have
More informationthe benefits of relevant life policies
the benefits of relevant life policies Welcome to our guide to relevant life policies. This guide explains the benefits of taking out a stand-alone single life policy on the life of an employee, and gives
More informationPROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK.
PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK. Technical Guide Discretionary Trust Deed 2 PROTECTION GIFT TRUSTS DISCRETIONARY TRUST PACK INTRODUCTION. This guide has been written to explain what a Discretionary
More informationRelevant Life Insurance
For adviser use only. Not approved for use with customers. Relevant Life Insurance Introducing Relevant Life Insurance Retirement Investments Insurance Health Introducing Relevant Life Insurance We ve
More informationThis Trust form is designed for use to hold the lump sum death benefits payable under the following plan types in trust:
GGA1568 FLEXIBLE TRUST FORM This Trust form is designed for use to hold the lump sum death benefits payable under the following plan types in trust: Individual Plan issued in connection with your past
More informationConsumer Guide SLOC With-Profits Fund for Life Insurance Plans
1 Consumer Guide SLOC With-Profits Fund for Life Insurance Plans Life s brighter under the sun Contents Aims of this guide 4 What does this guide cover? 4 What is a with-profits plan? 4 How does the SLOC
More informationGIFT TRUST (CREATING FIXED TRUST INTERESTS) ESTATE PLANNING WITH THE GIFT TRUST
GIFT TRUST (CREATING FIXED TRUST INTERESTS) ESTATE PLANNING WITH THE GIFT TRUST THE GIFT TRUST MAY BE SUITABLE FOR YOU IF: You would like to take advantage of the favourable potentially exempt transfer
More informationRelevant Life Policy. Trust Deed
Relevant Life Policy Trust Deed The Relevant Life Policy Trust is provided in draft format for the approval of your (the employer s) legal advisers. The appropriateness of this trust will depend on the
More informationInternational Bond Key features
International Bond Key features This is an important document. Please read it and keep for future reference. Helping you decide This key features document contains important information about the main
More informationFlexible Business Trust Deed
Flexible Business Trust Deed The documentation for the Flexible Business Trust is provided in draft format for the approval of your legal advisers. The appropriateness of this trust will depend on the
More informationABI response to the FSA s consultation on Regulatory Reform: PRA and FCA regimes relating to aspects of authorisation and supervision (CP12/24)
ABI response to the FSA s consultation on Regulatory Reform: PRA and FCA regimes relating to aspects of authorisation and supervision (CP12/24) The UK Insurance Industry 1. The UK insurance industry is
More informationAIG Life. AIG Relevant Life Insurance. Adviser guide
AIG Life AIG Relevant Life Insurance Adviser guide Contents The basics 4 What is relevant life insurance? 4 Who is it suitable for? 4 What are the conditions that have to be met for relevant life insurance?
More informationGains on foreign life insurance policies
Helpsheet 321 Tax year 6 April 2013 to 5 April 2014 Gains on foreign life insurance policies A Contacts Introduction Page 2 Part 1 Types of policy Page 3 What sort of policy do you have? Page 3 When will
More informationUsing Life Assurance to Mitigate Inheritance Tax
T e T c e h c n h n i i c a l l B B r i r e i f e i n f g i n g Using Life Assurance to Mitigate Inheritance Tax Most of us use insurance policies in a variety of ways, to protect ourselves against the
More informationTax factsheet Single premium life insurance bonds
Tax factsheet Single premium life insurance bonds The rules relating to the taxation of single premium life insurance bonds are complex. This factsheet outlines the tax treatment where a policy is held
More informationDiscretionary Trust PD (EP)
Discretionary Trust PD (EP) for existing Pension Buyout Plans and Retirement Annuity Contracts This trust incorporates By-pass provisions (see Explanatory Notes). Important If you are not sure this form
More informationThe Sections 80 and 82 Anomaly
Tax Trap: SIMON McKIE The Sections 80 and 82 Anomaly Excluded property; Inheritance tax; Life interests; Trusts A significant anomaly is identified and explored in the rules relating to trusts with an
More informationAegon s contribution to the Smith Commission on further devolved powers for Scotland
Aegon s contribution to the Smith Commission on further devolved powers for Scotland 31 October 2014 Introduction and high level comments Aegon welcomes the opportunity to provide input to the Smith Commission
More informationInheritance tax: investments in open ended investment companies and authorised unit trusts
Inheritance tax: investments in open ended investment companies and authorised unit trusts Who is likely to be affected? Investors switching UK assets from trusts settled by non-uk domiciled individuals
More informationInheritance Tax Avoidance - Pre-Owned Assets
Inheritance Tax Avoidance - Pre-Owned Assets Inheritance tax (IHT) was introduced over 25 years ago and broadly charges to tax certain lifetime gifts of capital and estates on death. With IHT came the
More informationThe new Lifetime ISA. Overview
The new 1.1 This document sets out the high level design of the. This will form the basis of discussions with industry to finalise the parameters of the scheme and ensure it works in the simplest way for
More informationKEY PERSON PROTECTION TECHNICAL GUIDE YOUR GUIDE TO KEY PERSON PROTECTION.
KEY PERSON PROTECTION TECHNICAL GUIDE YOUR GUIDE TO KEY PERSON PROTECTION. 2 KEY PERSON PROTECTION TECHNICAL GUIDE CONTENTS INTRODUCTION YOUR GUIDE TO KEY PERSON PROTECTION WHAT ARE THE TAXATION EFFECTS?
More informationInheritance tax planning and the family home
Inheritance tax planning and the family home An overview and options for lifetime planning technical factsheet Introduction Leading tax and legal experts agree that a family home should only form part
More informationInheritance tax: spouses and civil partners domiciled overseas
Inheritance tax: spouses and civil partners domiciled overseas Who is likely to be affected? Individuals who are domiciled outside the UK and who have a UK-domiciled spouse or civil partner and UK-domiciled
More informationINHERITANCE TAX PLANNING - TRUSTS, INSURANCE AND ALTERNATIVES: SIMPLE USES OF INSURANCE POLICIES IN INHERITANCE TAX PLANNING.
INHERITANCE TAX PLANNING - TRUSTS, INSURANCE AND ALTERNATIVES: SIMPLE USES OF INSURANCE POLICIES IN INHERITANCE TAX PLANNING 24 TH NOVEMBER 2009 Simon M c Kie MA (Oxon), Barrister, FCA, CTA (Fellow), APFS,
More informationAUTUMN 2013 PROFESSIONAL NEWSLETTER
AUTUMN 2013 PROFESSIONAL NEWSLETTER ACT TO GET TAX RELIEF WHILE YOU CAN The recent Government tinkering with the personal tax allowance system means there will be more higher rate (40%) taxpayers in tax
More informationAIG Life. Relevant Life Insurance A guide for employees and small businesses
AIG Life Relevant Life Insurance A guide for employees and small businesses Life insurance as an employee benefit If you own, run or work for a small business, you can get life insurance without paying
More informationA guide to pension tax
A guide to pension tax Footer info Zurich Blue 2 or White Contents About this guide 3 Tax treatment of payments 4 Eligibility to receive tax relief on payments Tax relief on payments made to pension schemes
More informationRestriction of pensions tax relief: a discussion document on the alternative approach
Restriction of pensions tax relief: a discussion document on the alternative approach July 2010 Restriction of pensions tax relief: a discussion document on the alternative approach July 2010 Official
More informationA guide to the Loan Trust Your questions answered
A guide to the Loan Trust Your questions answered Contents Why might i consider using a loan trust? 3 What is the Loan Trust? 4 How the Loan Trust works 5 Choice of trust 6 The Loan Trust in action 7 Further
More informationADVISER GUIDE TO RELEVANT LIFE POLICY AND TRUST FROM VITALITYLIFE
ADVISER GUIDE TO RELEVANT LIFE POLICY AND TRUST FROM VITALITYLIFE A Relevant Life Policy provides a lump sum benefit on the death of an employee. It is an alternative way for employers to provide individual
More informationINHERITANCE TAX PLANNING AND TRUSTS
INHERITANCE TAX PLANNING AND TRUSTS LIFETIME TRUSTS Introduction The Finance Act 2006 introduced significant changes to the Inheritance Tax (IHT) treatment of trusts with effect from 22 March 2006. The
More informationFor financial adviser use only. Not approved for use with customers. Guaranteed Whole Of Life Questions and Answers
For financial adviser use only. Not approved for use with customers. Guaranteed Whole Of Life Questions and nswers Guaranteed Whole Of Life (GWOL) Questions and nswers 1. What is the Inheritance Tax Threshold
More informationKEY FEATURES OF THE RELEVANT LIFE PLAN.
RELEVANT LIFE PLAN KEY FEATURES OF THE RELEVANT LIFE PLAN. LIFE COVER This is an important document which should be kept in a safe place. 2 RELEVANT LIFE PLAN KEY FEATURES USING THIS DOCUMENT. WHAT ARE
More informationThe higher rate threshold will also increase with the basic rate limit set at 32,000 for 2016/17 and 32,400 for 2017/18.
UK Summer Budget Delivered on 8 July 2015 The Chancellor s first Budget of this parliament was expected to be radical. The announcements made yesterday were not quite as radical as might have been expected
More informationInternational Tax information for customers Client Guide
International Tax information for customers Client Guide Contents Please note AXA Wealth International is the brand used for the promotion of international investment products offered by AXA Isle of Man
More informationSELECT SIPP. Taking pension benefits guide
SELECT SIPP Taking pension benefits guide Please read this guide in conjunction with the Alliance Trust Savings Handbook and the appropriate Key Features documents. Alliance Trust Savings does not give
More informationAn investment product designed for. everyone. A guide to the suitability of offshore bonds for UK professional advisers
An investment product designed for everyone A guide to the suitability of offshore bonds for UK professional advisers 2 Why you should read this guide Tax is the key driver for most offshore life bond
More informationDECEMBER 2014 AUTUMN STATEMENT
DECEMBER 2014 AUTUMN STATEMENT SUMMARY The key announcements by The Chancellor providing opportunities for financial planning advice are outlined below. PENSIONS Summary of all the pension changes to apply
More informationTax guide For individuals coming to the UK
Tax guide For individuals coming to the UK Contents Introduction..01 UK residency rules.02 Domicile.. 04 UK taxation of individuals.. 05 Remittance basis of taxation...09 Pre-immigration planning for non-uk
More informationSTEP response to HMRC Consultation on Vulnerable Beneficiary Trusts (publication date 17 August 2012)
STEP response to HMRC Consultation on Vulnerable Beneficiary Trusts (publication date 17 August 2012) The Society of Trust and Estate Practitioners (STEP) is the worldwide professional body for practitioners
More informationDiscretionary Trust Deed
Discretionary Trust Deed Discretionary Trust Deed What is it? A discretionary trust designed for use with life assurance plans including investment bonds. The settlor (the person creating the trust) cannot
More informationIntroducing a unique partnership that will grow your business
Introducing a unique partnership that will grow your business THE ASSET PROTECTION STRATEGY This is your opportunity to create income streams that add real value to your business whilst enhancing existing
More informationInheritance Tax Insurance Valuations
Inheritance Tax Insurance Valuations Simon McKie * Barrister, McKie & Co Insurance policies are an invaluable tool in inheritance tax (IHT) planning. For that very reason, a certain amount of anti-avoidance
More informationInternational Portfolio Bond for Wrap Key Features
International Portfolio Bond for Wrap Key Features This is an important document. Please read it and keep it along with the enclosed personal illustration for future reference. The Financial Conduct Authority
More informationHOW WE MANAGE THE PHOENIX LIFE LIMITED SPI WITH-PROFITS FUND
HOW WE MANAGE THE PHOENIX LIFE LIMITED SPI WITH-PROFITS FUND A guide for trustees with Simplified Pension Investment deposit administration policies invested in this fund The aims of this guide The guide
More informationContents 1 The purpose of a trust 2 The key people involved in a trust 3 Choosing which trust form to use 5 Deciding how to set up the trust 8 Your
Our guide to trusts Contents 1 The purpose of a trust 2 The key people involved in a trust 3 Choosing which trust form to use 5 Deciding how to set up the trust 8 Your questions answered 13 Appendix 1
More informationOur guide to relevant life policies for advisers
For advisers only Our guide to relevant life policies for advisers? Technical guide A relevant life policy is a stand-alone single life policy. It s a tax-efficient way for employers to give death-in-service
More informationBudget 2013 Summary Guide
Budget 2013 Summary Guide Contents Section 1: Introduction Section 2: Company/Business Tax IR35 Corporation Tax rate Capital allowances Company cars VAT measures Employment allowance Section 3: Personal
More informationLife insurance: qualifying policies
Life insurance: qualifying policies Who is likely to be affected? Higher and additional rate taxpayers with life insurance policies that are qualifying policies (QPs). General description of the measure
More informationThinking ahead. An affordable will and estate plan for you and your family
Thinking ahead An affordable will and estate plan for you and your family Thinking ahead Most people understand the importance of having a will and estate plan to safeguard their family s future. However
More informationRegis House, First Floor, 45 King William Street, London EC4R 9AN Tel: +44(0)20 3102 6761 E-mail: acahelp@aca.org.uk Web: www.aca.org.
Regis House, First Floor, 45 King William Street, London EC4R 9AN Tel: +44(0)20 3102 6761 E-mail: acahelp@aca.org.uk Web: www.aca.org.uk 22 May 2015 Employer Debt Team Department for Work and Pensions
More informationRelevant Life Policy. Technical Guide for Employers and Employees
Relevant Life Policy Technical Guide for Employers and Employees What is a Relevant Life Policy? A Relevant Life Policy: is a term assurance effected by an employer on the life of an employee and funded
More informationUK Insurance Key Facts. September 2010
UK Insurance Key Facts September 2010 The UK insurance industry is the third largest in the world and the largest in Europe. It is a vital part of the UK economy, managing investments amounting to 24%
More informationNEW IHT RULES FOR SETTLEMENTS AND OTHER RECENT DEVELOPMENTS
NEW IHT RULES FOR SETTLEMENTS AND OTHER RECENT DEVELOPMENTS Chris Whitehouse 5 Stone Buildings Lincoln s Inn WC2A 3XT Tel 0207 242 6201 Fax 0207 831 8102 Email edale@5sblaw.com These notes are intended
More informationDiscretionary Split Trust Deed
Discretionary Split Trust Deed Discretionary Split Trust Deed 2 This trust deed should not be used with plans that provide more life cover than critical illness cover. What is it? A discretionary trust
More informationDISCRETIONARY TRUST DEED TO USE WITH A SCOTTISH WIDOWS OEIC
DISCRETIONARY TRUST DEED TO USE WITH A SCOTTISH WIDOWS OEIC Below are some guidance notes to help you decide whether you should use this discretionary trust. It is very important that you read these before
More informationOnshore Bond for Wrap Key Features
Onshore Bond for Wrap Key Features This is an important document. Please read it and keep it along with your personal illustration for future reference. The Financial Conduct Authority is a financial services
More informationSimplification of the Tax and National Insurance Treatment of Termination Payments Response by the Chartered Institute of Taxation
Simplification of the Tax and National Insurance Treatment of Termination Payments Response by the Chartered Institute of Taxation 1 Introduction 1.1 The Chartered Institute of Taxation (CIOT) sets out
More informationThe ABI s response to the European Commission s Consultation Document on Foreign Exchange Financial Instruments
The ABI s response to the European Commission s Consultation Document on Foreign Exchange Financial Instruments The ABI The UK Insurance Industry The UK insurance industry is the third largest in the world
More informationEXCEPTED GROUP LIFE POLICY TERMS AND CONDITIONS.
EXCEPTED GROUP LIFE POLICY TERMS AND CONDITIONS. ABOUT THESE TERMS AND CONDITIONS. This document and our quote describe the Excepted Group Life Policy terms and conditions for employers who already insure
More informationSummary of Learning Outcomes. AES1/200504 Financial Services Skills Council 2004 16 2
ApEx 3 Protection 1 Summary of Learning Outcomes AES1/200504 Financial Services Skills Council 2004 16 2 LEARNING OUTCOME H1 INTEGRATED LEARNING OUTCOME FOR THE APPROPRIATE EXAMINATIONS STANDARDS FOR RETAIL
More informationRELEVANT LIFE PLAN PUT LIFE COVER ON EXPENSES.
PUT LIFE COVER ON EXPENSES. Our Relevant Life Plan is a cost efficient way of offering life cover to you or your employees. It s tax efficient and, in most cases, premiums can be treated as an allowable
More informationDiscretionary Loan Plan Trust Deed and Loan Agreement
Discretionary Loan Plan Trust Deed and Loan Agreement Discretionary Loan Plan Trust Deed What is it? A discretionary trust designed for use with single premium life assurance plans, more commonly known
More informationKEY GUIDE. Financial protection for you and your family
KEY GUIDE Financial protection for you and your family Protecting what matters most Life and health insurance protection underpins most good financial planning. These types of insurance can ensure that
More informationREMOVING THE REQUIREMENT TO ANNUITISE BY AGE 75
PENSIONS PROFILE MARCH 2011 REMOVING THE REQUIREMENT TO ANNUITISE BY AGE 75 Summary From 6 April 2011, the requirement to buy an annuity by age 75 will be removed. Alternatively Secured Pensions (ASPs)
More informationTHE TAX TREATMENT OF PENSION DEATH BENEFITS
THE TAX TREATMENT OF PENSION DEATH BENEFITS Recent changes to the rules for pensions have radically changed the approach of advisers with regard to pension savings. The following notes are designed to
More informationAs for income tax, the tax year runs from 6 April to the following 5 April.
Introduction Capital gains tax (CGT) is a tax on gains arising from disposals of assets. For several years after CGT was first introduced in 1965, if a person bought an asset for X and later sold it for
More informationFreedom and choice in pensions RESPONSE FROM ICAS TO HM TREASURY
Freedom and choice in pensions RESPONSE FROM ICAS TO HM TREASURY 11 June 2014 CA House 21 Haymarket Yards Edinburgh EH12 5BH enquiries@icas.org.uk +44 (0)131 347 0100 icas.org.uk Direct: +44 (0)131 347
More informationThis Trust is made the... day of... in the year... (the Trust )
Part A - Date of Trust If you are applying for a new policy and wish it to be issued in trust please tick this box and leave the date below blank. The trust will become effective on the same date as the
More informationDiscretionary Trust (DT)
Discretionary Trust (DT) This form is suitable for use when applying for our range of onshore life assurance products, other than those applied for online. It is only to be used for a current application
More informationKey features of the Flexible Pension Plan
For customers Key features of the Flexible Pension Plan Contents Its aims 2 Your commitment 2 Risks 3 Questions and answers 4 Other information 8 How to contact us 9 The Financial Conduct Authority is
More informationGROUP PROTECTION HELPING YOU UNDERSTAND EXCEPTED GROUP LIFE POLICIES (EGLP).
GROUP PROTECTION HELPING YOU UNDERSTAND EXCEPTED GROUP LIFE POLICIES (EGLP). 2 CONTENTS. Introduction 3 The different types of group life assurance 4 What is an EGLP? 4 What must I remember when I set
More informationStrengthening the incentive to save: a consultation on pensions tax relief. Response to the consultation document published on 8 July 2015
Strengthening the incentive to save: a consultation on pensions tax relief Response to the consultation document published on 8 July 2015 Grant Thornton UK LLP (Grant Thornton) has considered the proposals
More informationTAX PLANNING THROUGH TRUSTS OR ALTERNATIVE STRUCTURES
TAX PLANNING THROUGH TRUSTS OR ALTERNATIVE STRUCTURES EXPLORING THE ESSENTIALS TRAPS TO AVOID Overview 1. This lecture attempts to pinpoint the principal dangers when arranging a person's assets in a manner
More informationFor financial adviser use only. Relevant Life Cover. Adviser guide
For financial adviser use only Relevant Life Cover Adviser guide What is Relevant Life Cover? This is a tax-efficient way for small businesses to provide death-in-service benefits for their employees and
More information