The Inland Revenue has confirmed that it will not tax trusts where the settlor (the person who set up the trust) retains control over the trust.
The Court of Appeal has given the Inland Revenue the power to tax and it was thought that if the powers were used, individuals would not be able to place assets in trust with control of them for Inheritance Tax planning.
Now that the decision has been made, trusts for Inheritance Tax planning where the settlor retains control, appear safe.