Helping clients make better use of trust arrangements

It’s now ten years since the 2006 Finance Act changed the landscape for discretionary trusts by introducing three distinct points where an inheritance tax charge could potentially arise (upon entry, exit and periodic charges). 

So why is this important? Because 2016 is the first year that post-2006 discretionary trusts, or ‘relevant property trusts’, will trigger the ten-year 6% periodic charge.

Octopus offer BPR-qualifying investments that can help clients maximise the value of trusts for future generations. That’s because:
•    If assets are BPR-qualifying when they are settled into trust, there’s no ‘chargeable lifetime transfer’ (CLT) upon entry.
•    If a trust comprises BPR-qualifying investments at the ten-year point, there will be no periodic inheritance tax charge due.
•    And, when the time comes for capital to be distributed by the trust, as long as the trust assets are entirely BPR-qualifying, there’s no exit charge to inheritance tax, either. 

Talk to Octopus about BPR

If you have clients whose trusts have at least two years before reaching the periodic charge, or if you have clients who are looking to settle assets into a trust in the future, you may want to talk to Octopus about using BPR-qualifying investments with the aim of reducing, or in some cases eliminating, inheritance tax charges applicable to discretionary trusts. 

For more information there’s three options:-

1. Get in touch with your localOctopus Business Development Manager 
2. Call 0800 316 2298.
3. Register herefor the Octopus webinar on 6 July at 11.00am and earn one hour of CPD.