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Product category: Protection
News Release from: Standard Life Bank | Subject: Protection
Edited by the Insidemoneytalk Editorial Team on 22 March 2007

Standard Life: A quiet Budget for Trusts
and IHT

Gordon Brown's 11th Budget has generated a lukewarm reaction from those working in the field of estate planning.

The only announcement of note was the nil rate band for IHT increasing to ?350,000 with effect from 2010 The nil rate band amount for tax years up to 2009/2010 had already been preannounced last year, so it was known that the nil rate band would be moving up to ?325,000 in 2009/2010

Today's announcement simply continues that pattern of early announcements Commenting on today's Budget, Julie Hutchison, Estate Planning Specialist for Standard Life Assurance Limited said "Thankfully there were no shock announcements today for trusts and IHT as we unfortunately saw in the 2006 Budget".

"Today's Budget was more notable for its omissions than for its content on trusts and IHT.

For example, we are still awaiting the publication of the new regulations concerning the IHT100 reporting limits".

"We also await the formal guidance notes confirming the IHT status of gifts to a bare trust for minor beneficiaries".

"Early clarity in these two areas is important." Julie continued, "The absence of the new regulations for the IHT100 form means that those making gifts of over ?10,000 to most types of trust need to report that gift to HMRC.

This creates unnecessary compliance for tax payers and means HMRC has to process forms which do not generate any tax revenue".

"Early Government action is required on this." 21 March 2007.

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