IHT on trusts not retrospective - Finance Bill 2006

HMRC says the Finance Bill sets out the details of how the rules for Accumulation and Maintenance Trusts and Interest in Possession (IIP) trusts will be applied. It states there will be no retrospective tax charge and no-one who wrote a life insurance policy into trust before the 22 March will have to pay an IHT charge as they will continue to be exempt in the same way they were before the Budget. As a result the guidance note claims statements claiming millions of people will be affected by the change “remain simply incorrect”. HMRC claim the Finance Bill and its explanatory notes pr...