Taxation Of Life Assurance Policies In Trust Flashcards
Name all Who are charged if a policy is in trust
The settlor if he is alive and uk res
the settlor if he has a chargeable event before death and they were res in uk
The trustee if the settlor is dead before chargeable event or not uk res
If the trustees are not uk res then any Ben who is uk res will be charged as income with no top slicing relief
What is the charge to the trustee if an event occurs
20% for income within the trust standard band and 45% above this
How does a policy in trust affect someone’s iht
This is regarded as a transfer of value from the estate and will be liable to iht
What is a bare trusts impact on iht
Payment of first and subsequent premiums will be regarded as a pet
What is the impact of discretionary and all other trusts on iht
Those that were created after 22 March 2006 the excess over any avail exemption is a clt
Life time rate of 20% is payable if over the donors nrb
What does poat stand for
Pre owned assets tax
What is poat
It is an Anti avoidance measure introduced by the finance act 2004 and started on 6 April 2005
A charge on deemed income from certain gifts made since 18 March 1986 in which the diner retains some form of intrest
How is a life policy in trust charged by poat
Done at the equal to intrest to the official rate which is 2.5% in 2018/19
On the val retained by the settlor but only if they are not subject to gift with reservation rules
