Insurance policies in trust

ReportInvestor

These are policies set up to be outside a person's estate on death, and are often designed to meet the expected IHT bill.

It looks like Gordon may now be taxing these at 6%, including ones already set up :mad: .

Sunday Times - That'll wipe the smile off their faces

The main headlines about Gordon's budgets always take a week or so to emerge from the small print.

ReportInvestor

Times - Gordon backs down on retrospective taxation of insurance policies held in trust

"....As many as five million people were given a last-minute reprieve after the Treasury moved to quell a firestorm of criticism over changes to the tax regime affecting mainly middle-income families seeking to avoid inheritance tax.

The Treasury announced that the new tax would not hit life insurance policies currently held in trust, as it sought to remove confusion across the financial industry over the Chancellor’s intentions...."

dunstonh

I found that the most worrying thing about the proposals wasnt the change but the fact it was retrospective. To start going down that route with legislation would cause all sorts of problems.

ReportInvestor

I quite agree.

And you get the drift of his intention to make more out of IHT to raise revenue and to satisfy his unspoken ideological desires.

This is just one skirmish in a longer campaign by Gordon.

Chrismaths

The Treasury have now said it won't be retrospective (in the Finance Bill), but whether or not you believe them is up to you.