Latest news
Spring Budget 2023: developments on trust taxation
The Chancellor of the Exchequer, the Rt Hon. Jeremy Hunt MP, delivered Spring Budget 2023 to Parliament on 15 March 2023 and announced the following changes to trust taxation.
Low-income exemption
Currently, trusts that receive solely savings income in a tax year giving rise to tax of £100 or less (£500 for interest in possession trusts and £222 for discretionary trusts), have no reporting obligations or tax liability.
With effect from 6 April 2024...
Letter of Wishes: a crucial document accompanying the trust instrument
What is a letter of wishes (LOW)?
A letter (sometimes called a memorandum) of wishes (the “LOW”) is a document written by the Settlor of a Trust and can be a very useful tool in helping the Trustees to manage and administer the trust - in particular it is a very common device when a discretionary trust is created.
A LOW provides guidance to the Trustees as to the manner in which the Settlor would like the trust fund to be administered for the benefit of their i...
Register Of Overseas Entities: Changes Impacting Trust Structures
The Register of Overseas Entities (ROE) came into force in the UK on 1st August 2022 and has been introduced by the new Economic Crime (Transparency and Enforcement) Act 2022.
Changes to the ROE mean that overseas entities who are existing registered proprietors of (or are proposing to become a registered proprietor of) a property or land in the UK (the “qualifying estate”) they must register with and will have to provide additional information to Companies Hous...
Trusts and taxation in the light of Circular No. 34/E of 20 October 2022 of the Italian Revenue Agency
On 20 October 2022, the Italian Revenue Agency issued the Circular No. 34/E, on the taxation of trusts, in which it provides clarifications on the direct and indirect taxation of this instrument, in light of the now consolidated case law on the application of Inheritance and Gift Tax (hereinafter “IHT”) and on the regulatory novelties introduced, in the area of direct taxes, by Article 13 of Decree-Law 124/2019.
We provide below a brief summary of some milestone...
Wealth planning and the use of the Trust for the holding and management of works of art
In recent years, the trust has become an incredibly useful vehicle in the scope of wealth planning and asset management, particularly for artworks, antiques, and other collectibles, as it is a very efficient instrument both from the point of view of safeguarding the “real asset”, preserving its value and its transfer to future generations within a family, and from the tax point of view.
A trust is a legal relationship of Anglo-Saxon origin created by a settlor, ...