Life offices have expressed concern over potential new legislation, which could spell the end for products which take advantage of IHT loopholes.
The Inland Revenue has recently lost a case, but even if it is unsuccessful in overturning a ruling, legislation could well be introduced in the next budget to close the loophole, which allows spouses to gift assets without reservation to each other sheltered from IHT if written in trust.
A consortium of life offices has funded the court case so that the industry would have a firm legal footing to continue offering these products. Clerical Medical and Scottish Equitable are just two companies that offer such products. Clerical Medical is keeping IFA's informed of progress and urges clients to become aware that the Inland Revenue has concerns over the loopholes.
Scottish Equitable says that it will continue to offer these products and is confident that they work in the way they were designed to.
Learn more about inheritance tax and mitigation by visiting the Inheritance Adviser.com.
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