Pre-owned assets charges still a threat to investors

The Inland Revenue have confirmed to representatives of the UK insurance industry that the proposed income tax charge on gifted pre-owned assets will not apply to insurance-based schemes such as discounted gift trusts. The new proposals are contained in Schedule 15 to Finance Act 2004, and contain new charging rules in relation to land, tangible assets (chattels), and intangible assets. When the proposals were first announced, it was thought they were to be narrowly targeted at schemes that allowed individuals to enjoy the use of private property while removing the value from their taxabl...