TAX PLANNING WITH TRUSTS

Lexis Nexis Tolley Fifth Annual Conference, London, 24 May 2006

Conference review by Mark McLaughlin, General Editor, TaxationWeb

I do wish that more conferences were held 'Up North'! The best conferences very often seem to take place in London, and getting up at 4.00am to catch a train from Manchester is not my idea of fun! Fortunately, the Tax Planning with Trusts conference I attended in London made the early start seem very worthwhile.

This was an extremely well attended conference, probably due to the 'bombshell' changes to the Inheritance Tax (IHT) treatment of trusts in Finance Bill 2006, and perhaps to a lesser extent on the new income tax and Capital Gains Tax (CGT) legislation on trusts. I am sure that attendees hoping for a practical insight into the proposed changes did not leave the conference feeling disappointed.

1. The Speakers
   
   The conference was very capably chaired by Matthew Hutton, a capital taxes expert who will need no introduction to regular TaxationWeb visitors, due to his many featured articles.
   
   The panel of speakers was very impressive indeed. The first speaker was James Kessler QC, Barrister of 15 Old Square, who delivered the 'Keynote Address' on 'Modernisation of trusts and the new residence rules'.
   
   Perhaps the most eagerly awaited of all the sessions (following the Finance Bill provisions on IHT and trusts) was 'Inheritance Tax: current issues, by Nicholas Hughes, Director, Estate Planning & Trusts, Chiltern plc. This lecture was followed by Giles Clarke, Author of 'Offshore Tax Planning' (among the best tax titles I have ever come across, by the way), who delivered an interesting session on 'Offshore trusts: the latest developments'.
   
   Following lunch, the 'Graveyard spot' (i.e. lecturer's jargon for the post-lunch session!) subject was 'Capital Gains Tax 2006/07 and beyond', by Andy Richens, Tax Technical Director, Bishop Fleming. Following that session on CGT reforms, Simon Jennings, Partner, Rawlinson & Hunter, covered 'Income Tax 2006/07 and beyond'. The final session of the day was 'Planning and pitfalls: a round-up of tax issues for UK resident trusts' by Matthew Hutton.
   
   All the speakers delivered informative lectures with authority and (it seemed to me) a real awareness of the key trust tax planning issues that the conference delegates were hoping to extract from the day.
   
   
2. The Conference Notes
   
   The conference notes made a fairly impressive looking 'mini-book'. The contents vary according to the lecturer. Some produced notes for the conference pack, while others provided copies of their presentation slides, or included both notes and slides. Many conference delegates could be seen adding their own written points to the notes provided. On the whole, each set of notes for the various sessions provide a clear and succinct exposition of the subject matter. They are written to a high technical standard, and contain many useful, practical tax planning ideas for trust practitioners. I expect that delegates will pass these notes around to colleagues in their offices up and down the Country.
   
   
3. The Conference Content
   
   For the conference subjects covered in the various sessions, see 'The Speakers' above.
   
   Clearly, this year's conference was organised well before the 2006 Budget and Finance Act. The running order of the lectures was changed in view of the proposed IHT changes involving accumulation and maintenance and interest in possession trusts. Nick Hughes' session 'Inheritance Tax: Current Issues' was brought forward from the afternoon to the morning, such was the interest generated by the proposals. Not surprisingly, the content of the lecture also included a 'slight change to the advertised programme'! The extent of the proposed changes became clear when speakers referred to the existing discretionary trust rules as the 'mainstream regime', and interest in possession and accumulation and maintenance trusts affected by the proposed changes as 'relevant property trusts' (a reference to trust property under the discretionary trust rules).
   
   The technical level of this conference was high, as one might expect from such an accomplished list of speakers. In my view, this conference will be suitable for the skilled and experienced trust practitioner, who wishes to keep up-to-the-minute on new developments and the current thinking of experts in their field. I imagine that partners and senior managers of professional firms made up the vast majority of conference delegates.
   
   I hope that a publisher or the conference provider (Lexis Nexis) produces an article on technical points from the day (I will happily volunteer!). It would be very useful to see a summary of key the practical and technical points and issues raised by the speakers.
   
   
4. The Venue
   
   The venue for Tax Planning with Trusts was the Royal Lancaster Hotel, London. It was a very pleasant venue, which was worthy of the conference. The lunch was very palatable! From a personal viewpoint, I wish they would stop serving desert at all day conferences, as I can never resist the temptation! At least they did not serve wine with the meal, as this would have reduced the chances of me staying alert for the afternoon lectures!
   
   
5. Overall
   
   Lexis Nexis have set a very high standard with their conferences; high in terms of speakers, course notes and venue. It is also important to remember the actual administration of the event. In my view, it was very well organised both before and during the event. Each delegate will no doubt take away his or her own experience of the day, but I have to say that my own personal experience of the conference was a very positive one.
   
   The full cost of the conference was £599 plus VAT, although some discounts and concessions were available. This surely represents good value for money, for two reasons. Firstly, the conference generated a number of useful practical points and ideas, which could potentially be applied to 'real' client situations in the office. Secondly, the cost compares favourably with other conference providers, particularly those in which the speakers include Tax Counsel. The conference notes are separately available at £299 per pack.
   
   I can recommend the Tax Planning with Trusts conference to practitioners involved in trust tax planning generally. The fact that this was the fifth Tax Planning with Trusts conference indicates the popularity of the subject, and provide some assurance as to the quality of the event. I hope that Lexis Nexis invite me back next year to cover the sixth conference. Even if it means another 4.00am start!
   
   For those practitioners who missed this event but need to know about the new trust rules, I am informed that they may be interested in Tolley's forthcoming conference on Tax Planning for HNWIs in central London on Thursday 8 June. For further information, to reserve your place and secure a special £50 discount, click here

Disclaimer

The views expressed in this review are those of the writer only and not necessarily those of TaxationWeb. No responsibility can be accepted by the writer or TaxationWeb for any loss arising from action undertaken or refrained from as a result of this review.

Mark McLaughlin CTA (Fellow) ATT TEP
TaxationWeb
May 2006