June 2006

PROPOSED TRUST AND TAX RETURN CHANGES

Last month we reported on the proposed inheritance tax (IHT) changes for trusts. The professional bodies are lobbying HMRC and the government to reconsider the rules and we will keep you in touch with developments. If you have a trust, created before Budget day, there is no need to take any immediate action as the IHT charges will not generally take effect until 2008.

You will no doubt remember we also reported the surprise announcement, made at the same time as the Budget, of the proposal to bring forward the tax return submission deadline from 31 January to 30 September for paper returns, and 30 November for electronic ones. Once again the professional bodies are campaigning against this proposed change.

We will keep you informed of developments concerning both of these issues.

Internet Link: