Inland Revenue to appeal High Court IHT ruling

The Inland Revenue will appeal a High Court decision which found in favour of woman who worked her way around an inheritance tax (IHT) loophole through the establishment of a trust. Under the IHT rules, a person can give away up to £250,000 - which could be money or property - and this gift will not be liable to 40% tax. Money gifted to a "discretionary trust" would be subject to an immediate 20% tax charge if in excess of £250,000 as a chargeable lifetime transfer. A possible further tax charge on death could also be incurred. Despite changes to IHT rules in 1986, which...