Govt targets discretionary trusts in IHT clamp-down

In a joint paper launched today with HMRC, the Government suggests extending the Disclosure of Tax Avoidance Schemes (DOTAS) regime to include IHT as it applies to the transfer of property into trust. The Government and HMRC say they are aware tax avoidance schemes are being used to avoid this IHT charge. However, while the Finance Act 2010 included legislation to close down two such arrangements, the full extent of activity in this area is not known. Today's paper is marked as a "consultation", but the Government is only inviting comments on specific points related to implementation ...