IHT trust changes to force Muslim house sales - papers 8th May

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HUNDREDS OF MUSLIM families could be forced to sell their houses to pay inheritance tax bills as a result of changes to the way trusts are taxed, reports The Guardian .

According to the paper, Gordon Brown announced in the budget in March he was clamping down on the use of trusts to avoid inheritance tax however, the impact on the Muslim community, which numbers up to two million, has only now emerged. Under Sharia law, Muslims are required to distribute their wealth upon death through a special Islamic will. Widows are entitled to an eighth of the assets, and widowers a quarter, with the rest having to go to other family members. Until now, they have used trusts as a way of redistributing assets without incurring inheritance tax. In English law, a w...

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