IOU nothing, nothing at all

Dear Editor, Having been involved in the area of trusts and estate planning for more than 35 years, I am writing to advise my fellow capital tax advisers about an important decision relating to inheritance tax (IHT) which has just been issued by the Special Commissioners. It only applies in certain circumstances but where it does, it can have dramatic effects on the amount of inheritance tax payable. The decision affects routine inheritance tax planning using a nil rate band trust. What is at stake is currently £120,000 - the amount of inheritance tax saving using the nil rate band. ...