Ian Smart: In tax we trust

The inheritance tax (IHT) system is complex with measures being added to combat evasion sometimes having what seem to be unintended consequences for situations where there was no real tax mischief. Take for example the case of pure protection plans being put in trust. Prior to 2006 the tax treatment of trusts was fairly simple and there was very little for the trustees to do until after a claim was paid. However since 2006, trustees have had to think about the tax consequences of the policy first being placed in trust, its value every 10 years and any exit charge consequences of paying m...