The Office of Tax Simplification (OTS) have published a report containing proposed changes relating to Inheritance Tax (IHT). The Government will decide which of these rules will become law.
Trusts have been used as effective inheritance tax planning tools for generations. It is beneficial to consider the current landscape for using trusts and the available options that worthwhile considering for tax planning purposes.
An FIC can be used as an alternative to a family trust or individual ownership and is an effective consideration for inheritance tax planning purposes.
Recent changes in government policy have had a significant impact on individual’s owning property. Changes restricting the deduction of finance costs to a basic rate of tax and the introduction of the 3% SDLT surcharge have led many of our clients to consider whether a corporate structure is a more effective way to own a property portfolio.
The family home will be liable for inheritance tax “IHT” if the value of the home exceeds the available nil rate band upon the relevant individual’s death (the surviving spouse or sole owner). The value above the nil rate band of £325,000 is potentially exposed to tax at a rate of 40% however there have been some changes in this area, primarily around the introduction of the new nil rate band for family homes.
This article provides a high level summary of some simple planning for Inheritance Tax “IHT” purposes that can be undertaken outside of a larger planning exercise.
Business relief from IHT doesn’t automatically apply where the business involves letting holiday accommodation.
In 2015 the Conservative Party promised to ‘take the family home out of tax by increasing the effective IHT threshold to £1 million’. As the law stands, this target will be met by 2020 through the introduction of the residential nil rate band (RNRB). When the RNRB (worth up to £175,000) is combined with the […]
This article discusses the proposed changes in the UK Tax regulations for Foreign Domiciliaries
Some Inheritance Tax liability is avoidable by careful early planning and just as important is the risk that if you do survive a partner that you may not have enough remaining funds to enable you to enjoy the remainder of your lifetime in the manner that you would wish.