Some of you may have noticed that on 20th June 2003 the Treasury announced that a loophole in the tax legislation, which resulted in the avoidance of Inheritance Tax (IHT), was to be closed with immediate effect.

This arose from the Court decision in the case of IRC v Eversden (Executors of Margaret Greenstock). I will not take you through the case, but would note that the Inland Revenue having lost the case have applied to take the decision to the House of Lords.

So what can you do in the area of IHT planning post Eversden?

At Nunn Hayward we try to start from the basics, to help clients identify all issues that can arise in planning for this tax. We have an IHT calculator on our web site, which many people have used. For some that is a good starting point.

As a simple exercise try to list out all your assets / liabilities, and do not forget to include those that may only arise on death, such as life policies as well as possible inheritances you may receive. Also include gifts made in last seven years. List out who should benefit from your Estate in terms of capital / income, remember to include an amount (Total estate - £255,000) * 40%) for the Inland Revenue!

If you are happy with what you have produced then good!

But, if not, why not call me and we can discuss some of the planning techniques that you could be using.

Why did I mention Eversden? What loophole? Basically I mention Everden as being indicative of the movement of the Inland Revenue towards collecting monies rather than administering the Taxes Acts! The loophole, if that is the correct term, really means a type of planning that reduced the amount of taxation collected and which was in some ways, of very limited scope, but expensive, was considered unacceptable by the Treasury. So it is more important than ever to protect your family wealth from Taxation.

If you have any questions please call Douglas J Brown, Tax Partner on 01753 888211.

Thank you to everyone who attended the Investment Seminar at The Bull Hotel. There was a very good turn out for what proved to be an informative and entertaining evening.

Also a big thanks to all of you who filled in our feedback seminar forms. This information is very helpful for planning future seminars.

The winner of the bottle of champagne is Ken Balneaves.