IHT changes unlikely to impact loan trusts

The face of inheritance tax (IHT) planning changed completely on 22 March when the 2006 Budget introduced many new trusts provisions, which affect the tax treatment of gifts. The changes will be in draft until the Finance Act is passed in the summer, but trust planning has faltered as advisers come to terms with the new rules. However, there is one trust commonly used with bond investments, where the planning opportunities may remain unaffected - the loan trust. setting up The way a loan trust works is that the individual sets up a trust by making a loan to the trustees. This loan i...