Great Britain is going to limit the use of trusts.

09.06.2014

Her Majesty Revenue Service (HMRS) has earlier introduced two documents in order to simplify taxation system for inheritance tax from trust property.

Now, the inheritance tax for trusts is 40%, but the enclosures could not exceed 325 000£.

New model of taxation propose the cancelation of historical approach to the trust support and inherited property. It also limits the amount of money which could be out by the married couple into trust up to 650 000£.

Discussions over this proposal will continue until the 29^th of August, 2014.

Source:  https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/317871/140605_Final.pdf

Expert’s opinion

Trusts are an ancient device. This structure was in place since the jousting hiking, and English knights themselves successfully used trust agreements. We can only imagine how great is trust history and how many centuries English trusts not only just exist, but protect money of Englishmen.

The hands got to this perfect instrument at the time of globalization. Trusts are limited in use, investments and taxes.

Nonetheless, it is useful to keep in mind, that trust legislation is greatly developed in former British colony – British Virgin Islands. Cypriot trusts are also worth to mention. Trusts are a great instrument, that allows no only secure actives but, to multiply them, for successful businessmen, who wants to live his inheritance to the next of keen and not to destroy business overnight.

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)