Is the settlor of the business trust subject to pre-owned assets tax?
For protection policies onlyTue Feb 14 10:51:00 GMT 2017
As the settlor is a beneficiary under the business trust, there is a risk of a pre-owned assets tax charge if the policy has a value at the 6th April in any year, for example if the settlor is seriously ill.
This information is based on our understanding of current, taxation law and HMRC practice, which may change.
Trusts establish legal rights and entitlements and might have material financial and tax implications for the Settlor, Trustees and Beneficiaries. Aegon UK is not authorised to provide legal advice, so you should take your own legal advice before setting up a trust, to make sure that it meets your requirements. Our trusts have been drafted for use by UK domiciled individuals.