Tax and Trust Update

An update on any significant developments in private client taxation, reflecting any changes in 2023, but will include:

• Tax Planning for individuals, estates and trusts:

Following the Autumn Statement’s squeeze on taxpayers, with stealth taxes and reductions in allowances, some careful thinking is needed by clients, including executors and trustees. Many clients will be paying more tax, in lifetime or on death, simply by doing nothing. IHT is the classic “stealth tax” where the IHT “tax take” is increasing by a third over 5 years. There are opportunities for reviewing estate planning, for individuals and couples, which can help mitigate the effects of this squeeze.

We will explore these areas on which you might advise clients:

• • Inheritance Tax (IHT): what wills and trusts, and lifetime planning can help mitigate long term tax?
  • Capital Gains Tax (CGT) and Dividend tax: the huge cuts in CGT gains allowances and dividend allowances could be mitigated with some financial planning input.
  • Estates and Trusts: the cuts in allowances coming in 2023/24 mean changes in various elements of estate and trust practice are needed, including planning on trusts where capital with historic gains will need to be transferred out to beneficiaries – is there CGT hold over relief?
  • Deeds of Variation: how are variations affected by the stealth tax changes? And what are the TRS issues and potential planning points?
  • Income tax freeze: steps some individual clients can take
• TRS Updates? We will also identify any developments of significance on the Trust Register

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer