IHT exemption for emergency services personnel and humanitarian aid workers
Exemption from IHT is currently available for members of the armed forces whose death is caused or hastened by injury while on active service. The exemption will be extended to members of the emergency services and humanitarian aid workers responding to emergency circumstances. It will have effect for deaths on or after 19 March 2014.
IHT Exemption for medals
Medals and other decorations awarded for valour or gallantry are exempt from IHT. The exemption will be extended to include all decorations and medals awarded to the armed services and emergency personnel and to awards made by the crown for achievements and service in public life. The extended exemption will apply from 3 December 2014.
IHT and trusts
The Government has been consulting on changes to the taxation of trusts for a number of years. In June 2014 a consultation document was released proposing that each settlor would only have one nil rate band to be shared by all trusts they created. This plan has now been dropped although consultation on the simplification of the calculation of trust tax charges will continue.
New anti-avoidance rules will be introduced in Finance Act 2015 to counter the situation where an individual sets up a number of trusts with say £100, with the intention of adding further funds later, thereby trying to secure a nil rate ban for each trust.