Alastair Darling’s 2010 Budget includes provisions designed to help asbestos trusts which were set up by companies prior to 24 March 2010 to meet their asbestos liabilities. Under the proposal, the trustees of such a trust would be exempt from income tax, capital gains tax and inheritance tax retrospectively from 6 April 2006. The Government has promised to introduce legislation to facilitate this provision in the next Parliament.
Such tax breaks could really help asbestos trusts which attempt to meet a company’s liability for asbestos related diseases. However, as the election is imminent and the legislation has not been put forward as yet, it is uncertain whether the provision will ever become law.
