The government previously discussed changes to the way inheritance tax is charged on trusts and the summer Budget confirmed that these changes will be implemented.

Lost among the headline summer Budget announcements to all but a very keen observer was the government’s confirmation that the use of multiple nil rate bands for multiple trusts could continue, albeit subject to new rules. This was last discussed in our March 2015 Private Client and Tax Update which can be found here.

The Chancellor’s statement has confirmed that multiple trusts should continue to benefit from multiple nil rate band allowances (£325,000 for 2015/16 and frozen at that level until at least 2020/21) provided that each trust is set up on different days and there are no “same-day additions”.