INHERITANCE TAX

Simplifying IHT Charges on Trusts

From 6 April 2014, the filing and payments dates for inheritance tax relevant property trust charges will be aligned to fall due 6 months after the end of the month in which the chargeable event occurs. Further, income arising in such trusts which remains undistributed for more than 5 years will be treated as part of the trust capital when calculating the 10-year anniversary charge.

Liabilities and Foreign Currency Bank Accounts

Finance Act 2014 will amend the inheritance tax rules introduced last year dealing with treatment of liabilities so that foreign currency accounts in UK banks are treated in a similar way as excluded property for the purposes of restricting the deduction of a liability. This measure will apply to liabilities incurred at any time but only where the death has occurred on or after the date of Royal Assent.