Trust Taxation and Estate Planning 5th Edition

This highly anticipated fifth edition of Trust Taxation and Private Client Tax Planning (formerly Trust Taxation and Estate Planning) has been completely updated and revised since it was last written in 2013, to cover all areas of private client taxation planning, including precedents.

It brings the book completely up to date and features numerous new chapters including:

• New and updated chapters on the major changes on the taxation of foreign domiciliaries
• A rewrite of most chapters including excluded property trusts, insurance schemes, residence, domicile, taxation of UK real estate, SDLT and IHT and CGT planning chapters
• New chapters on Trusts Register DOTAS and GAAR
• New chapters on family investment companies and deferred share schemes
• A new chapter on EU law and the post-Brexit situation

The fourth edition has been completely updated and revised to cover all areas of trust taxation but with a greater focus on estate planning. 

New areas covered include:

• The statutory residence test  - this is considered in detail including pre-and post-emigration tax planning matters.  One of the authors was closely involved in the design of this test. 
• The new inheritance tax restrictions on debts and liabilities are analysed and HMRC’s change of approach on the situs of specialty debts is considered. Practical points in structuring debt are highlighted
• Annual tax on enveloped dwellings and capital gains tax on non-resident companies.  An entire section is devoted to these new taxes and to the options in terms of holding high value residential property generally. 
• The new spouse exemption for foreign domiciliaries
• Consideration of foreign entities including partnerships and usufructs
• GAAR and tax avoidance generally: this is considered at length in the context of private client planning – one of the authors was on the interim GAAR committee that approved the first Revenue GAAR guidance
• Recent inheritance tax cases in the context of business property relief and carve outs
• Update on disabled trusts following FA 2013 changes
• New inheritance tax and capital gains tax planning techniques for the family home including use of trusts.  The original chapter has now been split into three new chapters with separate discussion of past schemes, what to do with home loan schemes where clients have died, how foreign domiciliaries and non-UK residents should hold UK property and the pros and cons of different structures.

This important title is not limited to a simple discussion of taxation of trusts, but covers all aspects of estate planning generally for individuals with a particular focus on use of trusts. The taxation of beneficiaries and settlors as well as trustees of UK resident and non-resident trusts is considered. 

• This book is not limited to a simple discussion of taxation of trusts.  It covers all aspects of estate planning generally for individuals with a particular focus on use of trusts. The taxation of beneficiaries and settlors as well as trustees of UK resident and non-resident trusts is considered.   The chapters on residence and domicile are entirely rewritten and contain a comprehensive survey of all the pre and post April 2013 law in these areas. 
• Part 1 contains an overview of trust law including the recent Supreme Court decision on mistake and Hastings Bass and the categorisation of foreign entities including discussion of the Anson decision.
• Part 2 analyses the pre April 2013 residence position and contains practical advice for the taxpayer in relation to disputes with HMRC.   The new statutory residence test is considered in detail with many examples illustrating practical points of difficulty for taxpayers to watch.   The new temporary residence rules and split year are analysed in detail.   Part 2 now has a separate chapter on domicile.  The residence of trustees, PRs and companies is now considered along with the tax position of foreign domiciliaries as both settlors and beneficiaries.  
• Part 3 covers income tax issues for trusts, settlors and beneficiaries. 
• Part 4 covers capital gains tax and all the reliefs including resettlements, entrepreneurs’ relief, rollover relief and hold over relief. The book analyses typical problems that the private client practitioner is likely to meet in the capital gains tax context when advising private clients
• Part 5 considers inheritance tax including reservation of benefit and POAT, all aspects of excluded property trusts and UK trusts including specialist areas such as the exercise of general powers of appointment, deduction of liabilities, relevant property trusts.
• Part 6 contains specialist topics. These include: tax efficient will drafting and deeds of variation, pilot trusts, appropriate trusts for children and grandchildren, use of trusts in divorce, bare trusts, capital tax issues for personal representatives, disabled trusts.
• Part 7 is a new section on houses and chattels, including discussion of ATED and the new capital gains tax charge on high value property, how to deal with past inheritance tax schemes on the family home including home loan schemes, inheritance tax planning in the future, capital gains tax problems on the main residence and the pros and cons of different property owning structures for foreign domiciliaries.
• Part 8 deals with business structures including business property relief and agricultural property relief, EBTs and partnerships.
• Part 9 covers investments including bonds and life policies, pension arrangements.
• Part 10 covers SDLT, GAAR and tax avoidance, penalties and disclosure and has a useful  checklist of pointers for private clients.
• Appendix 1 contains useful precedents for all private client practitioners that cross refer to the main text. These include wills, pilot trusts, deeds of appointment and advancement, a bare trust, a disabled trust
• Appendix 2 contains miscellaneous Revenue material and correspondence with Technical bodies not always easily accessible to the average practitioner
• Appendix 3 contains an invaluable summary of all the pre April 2013 case law on residence and a comparison between different factors that will be vital for a practitioner wishing to assess their client’s position in a dispute with HMRC