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Trusts and Estates Law and Tax Journal: October 2012

Marilyn McKeever gives a debrief on the ‘mansion tax’

Once again, the government has proposed legislation seemingly without having a proper understanding of the context or the practical implications of the proposals.

Sarah Lee outlines the ramifications of the 10% IHT relief for charitable giving

On 10 August 2012, HMRC produced new guidance on the 36% reduced rate of IHT for estates where 10% or more of a component passes to charity. The guidance is at IHTM 45000. The government first announced its proposals for the relief on 23 March 2011 in the 2011 Budget.

Richard Frimston discusses the implications of the EU Succession Regulation

The EU Succession Regulation (SR) came into force on 17 August 2012. It is designed to counter the problem that different states have completely different private international law rules (PIL) for succession. While the UK uses domicile as a connecting factor, others use ‘domicile’ but with different definitions to those of the UK. The PIL of most of the rest of the EU is that succession law is governed by the law of an individual’s nationality and that the entire estate, movable and immovable, is governed by that law.

Brabners LLP

Duncan Bailey explores the truth behind the media perception of trusts

The publicity offices of organisations such as the Society of Trust and Estate Practitioners (STEP) and the Law Society are helping to convey the message and inform the community and media at large what trusts are and their uses. But despite this, the general public is still all too often uninformed about trusts and so are influenced by the media suggesting that trusts are the sole preserve of the rich as a means of avoiding paying tax.

Emily Campbell looks at recent cases that help to define the role of trustees in litigation

A traditional analysis would suggest that there are two main types of claim in litigation concerning a trust, ie ‘external’ disputes and ‘internal’ disputes, although this is not necessarily the language used by judges. It is often difficult to categorise litigation concerning trusts, in particular disputes concerning a challenge to the validity of the trust. Similar comments can be made about litigation concerning estates, although this article focuses on litigation concerning trusts.

Withers LLP

Failure to disclose a change in shareholding could result in a large financial penalty, as Colin Smith and Christopher Groves explain

There are strict rules in place on those who hold significant numbers of shares in companies that are listed on a UK-regulated market to report changes in their shareholding – such reports need to be given promptly following the change. Failure to make such a report, or report late, can result in severe penalties. Trustees need to be aware of the obligations and dangers involved in holding such shares, particularly as events such as the retirement of a trustee can trigger a notification obligation. Furthermore, trustees need to be aware that if their beneficiary is a person discharging managerial responsibilities (PDMR) for the relevant listed company whose shares they hold, any change in the shareholding (including any charge granted over the shares), no matter how insignificant, must be reported.

Withers LLP

Harriet Atkinson examines HMRC’s new guide to capital taxation and the national heritage

On 14 September 2011 HMRC published their latest version of Capital Taxation and the National Heritage, a 239-page technical guide to the relevant legislation, which also provides guidance on HMRC’s current approach to administering the provisions. The memorandum outlines the scope of the legislation as at 2011 and supersedes earlier editions of the publication (known in its last edition as IR67). It describes the exemptions and reliefs from capital taxation for national heritage property, the arrangements for dealing with claims for these reliefs, the procedures for private treaty sales to national collections, offers in lieu of IHT or estate duty, gifts to charities and arrangements relating to heritage maintenance funds. The guidance can be found at and through the IHT manual.


Tim Harrison sets out the current position on caveats

Lindley LJ said, at p216 of the Court of Appeal decision in Moran v Place [1896]: