Technical special: Building a simpler world for discretionary trusts

The use of trusts as a means of optimising tax efficiency for both on and offshore investments has been incredibly popular in recent years. By using trusts as an estate planning tool, settlors can ensure their assets sit outside the scope of UK inheritance tax (IHT), decide how they wish their wealth to be distributed and avoid the need to apply for probate. In 2013, the UK government began its consultation over the use of trusts and whether a move to simplify the taxation of discretionary trusts (or relevant property trusts) should take place. The proposal by HM Revenue & Customs (HM...