Combining Pets with CLTs to minimise tax

When considering making two gifts in close succession, you need to consider the order of events to ensure future tax liabilities are minimised. The relevant property regime, which now treats interest in possession and accumulation and maintenance (A&M) trusts in a similar manner to discretionary trusts for inheritance tax (IHT) purposes, brings with it some added complexities. These can easily be missed but clearly demonstrate the need for advice in this ever changing market. It is worth remembering that in 2005/06, the IHT yield for the Government was just short of £3.3bn. According to...