Spring Budget 2024 – Non-dom no more
Given that the Chancellor has previously defended the rules around non-UK domiciled individuals (or ‘non-doms’) by raising concern over the mobility of such individuals and claiming that he “would rather wealthy foreigners spent their money in Britain”, the announcement today was somewhat out of character… although some may claim it as a pre-Election gimmick, preventing […]
Budget 2023 – the great big pension gamble
Although the budget felt a bit light on content from a personal tax perspective, there was still some interesting stuff, although not a total surprise if you had followed the news over the weekend! The biggest change since A Day? Who would have thought that a change to pension tax would incentivise people to work? […]
Budget 2021 – tax thresholds frozen but are fundamental changes on the horizon?
Rather than the much anticipated increase in capital gains tax rates, or even changes to business assets disposal relief (previously known as entrepreneurs’ relief), the Chancellor has instead decided to freeze income tax, capital gains tax and inheritance tax thresholds. The Chancellor acknowledged that the fairest route was to have the highest earning households contribute […]
Gifting shares – Don’t make a ‘reservation’!
It is common for shares in a family company to be passed down the generations. However, anti-avoidance rules dealing with ‘gifts with reservation’ (GWR) are a potentially nasty inheritance tax (IHT) trap. Cake and eat it The GWR provisions (FA 1986, ss 102-102C; Sch 20) are broadly designed to prevent an individual seeking to reduce […]
Let’s not get married!
The UK’s tax system features various reliefs, exemptions and allowances, some of which are seemingly designed to encourage couples to be married (or in a civil partnership). For example, gifts between spouses are normally exempt for inheritance tax (IHT) purposes (although the exemption is subject to a restriction if the recipient spouse is non-UK domiciled). […]
Say it with…tax breaks
Some professions could be described as ‘sexy’. Unfortunately, tax is not one of them. It would also require a monumental stretch of the imagination to describe tax as ‘romantic’. However, romance can be found in the tax legislation; or to be more precise, tax can be used to fuel romance in a relationship. Of course, […]
Business property relief: Traps to avoid
Many business owners will be aware of business property relief (BPR) for inheritance tax (IHT) purposes, and some might assume that the value of their business interest will be sheltered from IHT by BPR. However, BPR (at the rate of 100% or 50%) is subject to various conditions and restrictions. This article outlines a selection […]
IHT and holiday lettings: A (rare!) business property relief success
Inheritance tax (IHT) relief at the rate of 100% is an attractive proposition. Business property relief (BPR) is available to business owners if certain conditions are satisfied. BPR at the 100% rate applies to ‘relevant business property’ including a business or interest in a business (in certain other cases, BPR is available at 50% instead). […]
IHT and holiday lettings: A (rare!) business property relief success
Inheritance tax (IHT) relief at the rate of 100% is an attractive proposition. Business property relief (BPR) is available to business owners if certain conditions are satisfied. BPR at the 100% rate applies to ‘relevant business property’ including a business or interest in a business (in certain other cases, BPR is available at 50% instead). […]