20 March 2020 - Events
As announced in the Government’s Autumn Statement in 2013, last month’s Budget confirmed that, from 5 December 2013 the Government will remove what has been a significant capital gains tax downside which applied on the death of the vulnerable beneficiary of certain types of disabled person’s trust. Prior to 5 December 2013, on the death of the vulnerable beneficiary, the value of the assets in the trust was not uplifted for capital gains tax purposes, leading to potentially significant future capital gains tax liabilities on the disposal of assets of the trust. This uplift will now apply to all qualifying trusts for vulnerable beneficiaries and this change is greatly welcomed. In a separate change, the Chancellor also confirmed that the definition of disabled beneficiary will be extended to include those who are entitled to the mobility element of Disabled Living Allowance and the new Personal Independence Payment.
The Government has also announced that from 2014 to 2015 the range of trusts which qualify for the special income tax, capital gains tax and inheritance tax treatment will also be extended although it is not clear at this stage what form this extension will take.