“They’ve hit trusts, but not as hard as we were expecting which is a bit of a relief,” said Schulze.
Under new rules, taxpayers can no longer sell assets into a trust or lend assets into a trust without charging interest on that loan.
If taxpayers fail to charge interest, that interest will be treated as a donation which will incur a 20% tax.
“Traditionally, the practice was used as an estate planning tool to peg the value of an estate by putting asset into the trust on loan accounts and that loan account would then remain at that level for the rest of your life,” said Schulze
“The assets would grow in the trust and as a result you would save a whole lot of estate duty on the growth of those assets.”
