Budget: Trusts system to be modernised

Details of the Regulatory Impact Assessment for trust modernisation point out taxation of trusts is currently a complex area, so changes are being made to clarify common meanings which determine who is the trustee, who gains from the trust, and how it should be treated for tax purposes. More importantly, additional moves to align inheritance tax treatment of trusts will also affect people currently holding 'interest in possession' trusts (IIPs) as they will no longer meet IHT rules, as is the case for 'accumulation and maintenance trusts' (A&Ms). This essentially means most assets held ...