HMRC guidance on DGTs boosts market

HMRC has clarified its stance in three main areas. Firstly, it has specified the methodology that providers should use in the valuation of gifts. It says this is crucial for determining the discount available on a DGT and therefore affects the amount of IHT payable. HMRC has confirmed the value of the gift will be based on the settlor’s sex, age, health and insurability as at the gift date. It has also outlined its current assumptions on mortality and interest rates for this purpose. Secondly, HMRC has outlined the technically correct methodology for valuing joint settlor cases. Whereas...