HMRC clarifies position on Discounted Gift Schemes

The note focuses on the valuation of lifetime transfers and the underlying valuation methodology. It also sets out the approach it will adopt in joint settlor cases, which, in some cases, will be more precise than that adopted up to now. Commenting, Gerry Brown, technical manager at Scottish Life International, said: “This technical note will help clear up the confusion surrounding the value of transfers to discounted gift trusts. This clarity is important because following the changes to the inheritance tax treatment of trusts introduced last year, the value transferred triggers an immedi...