Written By: admin on April 19, 2010219 CommentsThe 2010 Budget introduced a new measure that will exempt trusts set up for the purpose of paying compensation to, or in respect of, individuals with asbestos related conditions.Ordinarily, the trustees of a fund must pay inheritance tax, capital gains tax and income tax on the assets held by the trust.This new measure will ensure that trust funds set up by companies with its creditors specifically to pay compensation to or in relation to victims of asbestos related illnesses are exempt from these requirements. It will apply to all trusts set up after 23rd March 2010.This is only fair and just, given the importance of providing proper compensation to victims of debilitating conditions such as asbestosis, mesothelioma, asbestos related lung cancer and other asbestos industrial diseases. The measure will bring trusts set up for this purpose into line with charitable trusts (which already benefit from the same tax breaks).Click here to read the HMRC press release announcing the new measure.
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