This guide examines the taxation of trusts. It covers all the capital gains tax (CGT) and inheritance tax (IHT) changes on trusts since 1998 which culminated in the Finance Act (FA) 2006, including: types of trust; residence and domicile; overview of the taxation of trusts; income tax; CGT definitions; CGT on creation of a settlement; actual and deemed disposals by trustees of UK resident settlements; CGT on the disposal of a beneficial interest; CGT hold-over relief; offshore trusts; settlor-interested trusts; loss relief provisions; IHT, reservation of benefits and pre-owned assets income tax; the new IHT rules; IHT definitions and classifications; creation of settlements; qualifying interest in possession trusts; when IHT is charged on qualifying interest in possession trusts (including transitional relief); immediate post-death interests and other qualifying interests in possession after FA 2006; taxation of relevant property settlements; accumulation and maintenance trusts; excluded property settlements; liabilities; gifts with reservation of benefit and the pre-owned assets income tax regime; trusts for minors and for older children; trusts for vulnerable and disabled beneficiaries; reverter to settlor trusts; tax efficient will drafting; planning after deatch; bare trusts; the family home and chattels; business and farms; insurance-based arrangements; trusts & divorce, stamp duty land tax and stamp duty: and compliance and disclosure.