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bigduckontax
bigduckontax, Accountant
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Given the proposed governmental and incremental changes in

Customer Question

Given the proposed governmental and incremental changes in allowances designed to off-set IHT at 40% do I need to retain my discretionary trust?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. I would submit probably not, but remember that some of these changes do not come in until April 2017. Furthermore, if the trust has assets then when the trusts ends they may be deemed to be disposed of and Capital Gains Tax (CGT) applies to any gain made. Trusts have a limited Annual Exempt Amount of GBP 5550 and any gain is taxed at 28%. You can read all about Trusts and CGT here: https://www.gov.uk/trusts-taxes/trusts-and-capital-gains-tax This is an extremely complex area and you might be well advised to consult a trusted, local professional before embarking on a dissolution.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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