Inheritance Tax and trusts news
HMRC have issued a newsletter update for those involved with inheritance tax and trusts. The main topics covered in the newsletter are as follows:
- An update on the services provided by the HMRC Probate & Inheritance Tax Helpline
- Change in interest rates from September. The new rates for all unpaid taxes (including IHT) will be the Bank of England base rate plus 2.5% whilst the rate for repayments of tax and interest will be the base rate less 1% with a floor of 0.5%.
- Rules for requesting a revaluation following reductions in the value of real or leasehold property.
- Valuations and penalties. Comment on what HMRC accept as a correct valuation.
- The extension of agricultural property and woodlands relief to land in the European Economic Area from 22 April 2009.
- Clarification of HMRC’s guidance for Trusts to obtain UK tax credit on foreign dividends.
- The launch of a ‘Taxpool Calculator’ to automatically calculate a discretionary trust’s taxpool figure.