IHT: excluded property

The CIOT has commented on clause 72 of Finance Bill 2020 which provides that additions of assets by individuals domiciled in the UK to trusts made when they were non-domiciled cannot be excluded property and are therefore within the scope of inheritance tax. The CIOT notes concerns that there are ‘substantial deficiencies in the legislation as currently proposed’. The Institute also endorses the recommendation of the ICAEW that the clause be removed from the current Finance Bill and that HMRC conducts a formal public consultation with a view to clearer legislation which avoids causing unreasonable practical problems for trustees.