Skandia is updating its adviser technical guidance notes, following changes in the Finance Act 2006 ...
Skandia is updating its adviser technical guidance notes, following changes in the Finance Act 2006 on IHT and trusts.
In the updates, Skandia recommends advisers to take advantage of the 12-month window for reporting trust cases to HMRC, as the limits are likely to change from £10,000 to £200,000 in autumn.
The company has also urged advisers to top-up pre-budget policies rather than recommend new ones. This is because HMRC has confirmed increases to these policies would remain subject to the old taxation regime and not incur any new IHT liability, whereas new policies would fall within the new taxation rules.
Colin Jelley, head of tax and financial planning at Skandia, said: "Trusts still have a fundamental role to play in the planning process. Advisers must not shy away from them because of the new IHT treatment introduced by the Finance Act 2006. They must make use of the guidance available to them."
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