Chris Woodhouse Formerly a partner with Boodle Hatfield and now practising as a barrister from 8 Gray’s Inn Square) (taken from Isssue No 2 – February 1997)
1 The Current Political Situation
These are exciting times for the estate planner. The current tax regime provides many opportunities for sensible tax planning but of course it may not last since the General Election must be held by – at the latest – 22 May. What will then occur?
A win for the Conservative party would spell the end for Inheritance Tax. Perhaps not immediately, but during the course of the Parliament it would almost certainly disappear. CGT will also be reformed although exactly how is far from clear. Outright abolition (allied to a strengthening in the borders of income tax) is one option; replacing the current tax system with a short term gains tax so that tax is not charged once the asset has been owned for (say) seven years is another. Historians will recall that CGT originated in a short term gains tax introduced by Mr Selwyn Lloyd, subsequently replaced in 1965 under the Wilson Government by the current fully comprehensive tax. But what if Labour wins?
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The Trust Quarterly Review is published in partnership with STEP, it discusses matters of interest to trustees and executors with a focus on the particular interests of trust corporations in mind
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