Tax changes for certain trusts compensating asbestos victims
The measure
The trusts covered by this measure will be those created as part of an arrangement made by a company with its creditors requiring them to pay compensation to victims of asbestos related conditions. Such trusts will be exempt from income tax, capital gains tax and inheritance tax.
Who will be affected?
Trustees of relevant trusts created on or before 23 March 2010.
When?
The measure takes effect from 6 April 2006.
Our view
It is only fair that tax breaks are given to trusts set up to compensate victims of asbestos. This effectively brings such trusts in line with charitable trusts which do not normally pay income tax, capital gains tax or inheritance tax.
