The government on Friday blocked a loophole that allowed hundreds of married couples to escape inheritance tax.
The loophole let married couples set up a device called a defeasible life interest trust, also known as the Eversden loophole, which would allow their children to avoid paying the tax, if the parents stayed alive for more than seven years.
Under other mitigation devices for the tax, which kicks in at 40% on all properties worth more than £255,000, the exemption expires after seven years.
References: Financial Times 21/06/03 page M1, The Times Business (Need to Know) 21/06/03 page 51, The Daily Telegraph (In Brief) 21/06/03 page 29
