Taxation of investment bonds held in trust
A look at who’s liable for income tax on a chargeable event gain for a bond held in trust.
Pre-March 2006 flexible trusts
We explain the tax implications of making changes to a pre-March 2006 trust.
Understand pre‑March 2006 flexible trusts in the UK
Legislation introduced in the Finance Act 2006 affected the inheritance tax (IHT) treatment of any Interest in Possession (IIP) trust set up on or after 22 March 2006.
Flexible interest in possession trusts created before a key change in trust legislation can still offer valuable planning opportunities, but they are subject to a unique blend of old and new rules.
This briefing note explains how pre‑change flexible trusts are treated for inheritance tax, the role of transitional serial interests, and when exercising flexibility can drag a trust into the relevant property regime. It will help you review legacy trusts and decide whether, and how, to make changes without triggering unnecessary charges.
Read more about pre-March 2006 flexible trusts.
Explore more briefing notes
Principal and Exit Charges
Help your clients by understanding the Inheritance Tax (IHT) charges for relevant property trusts. These can apply on entry, at every tenth anniversary and when trustees distribute capital to beneficiaries.
Order of Taxation
Learn how different types of income are taxed and how they fit into a client’s income tax calculation.
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