The government has issued its response to the consultation on calculating inheritance tax charges on trusts. Key announcements include:

  • no split of the nil-rate band for trusts
  • new measures for tackling avoidance risks with the use of multiple trusts, focusing on pilot trusts
  • the simplification of calculation of trust charges, by removing the requirement to include ‘non relevant’ property.

HM Revenue and Customs has also published a Tax Information and Impact Note, ’Inheritance Tax: simplifying charges on trusts and new rules to target avoidance through the use of multiple trusts’.