Making Family Trading Company Investments IHT Efficient
Many family and owner-managed trading company owners invest in their businesses through a combination of acquiring shares and making cash loans. The company might use the funds for the same business purpose, but the inheritance tax (IHT) implications of the shares and cash loans will often differ, depending on the availability of business property relief […]
POAT: Out Of The Frying Pan Into The Fire? Part 2
Some possible exceptions to the pre-owned assets income tax charge, as it applies to land and property. The pre-owned assets tax (POAT) is an income tax charge that can be an unexpected and unpleasant surprise for some individuals. Fortunately, the scope of POAT is restricted by a number of excluded transactions and exemptions from the […]
POAT: Out Of The Frying Pan Into The Fire? Part 2
Some possible exceptions to the pre-owned assets income tax charge, as it applies to land and property. The pre-owned assets tax (POAT) is an income tax charge that can be an unexpected and unpleasant surprise for some individuals. Fortunately, the scope of POAT is restricted by a number of excluded transactions and exemptions from the […]
Making Gifts And Legacies: Love Letters
The reason why an individual (e.g. a family member) makes a gift to another is ultimately a matter of fact. However, it will often be necessary to provide evidence in support of the reason for the gift, because the tax treatment might depend on it, particularly if there is more than one possible reason and […]
POAT: Out Of The Frying Pan Into The Fire? Part 1
An overview of the pre-owned assets tax charge as it applies to land and properties. Individuals (and advisers) will sometimes need to consider whether ‘pre-owned assets tax’ (POAT) applies, such as (but not necessarily) if inheritance tax (IHT) planning is undertaken. The POAT rules broadly charge income tax on benefits received by former owners of […]
Inheritance Tax – Whose Money Is It?
A potential inheritance tax pitfall of jointly held money accounts in banks and building societies etc. If a bank or building society account is jointly held by family members (e.g. father and adult daughter) it can cause some difficulties for inheritance tax (IHT) purposes. For example, when one of the joint account holders (say, father) […]
Gifting The Family Home – An IHT Trap
It is not uncommon for individuals to give away their family home. For example, an elderly widow moving into nursing care may be in the fortunate position of being able to make a lifetime gift of her residence to her adult daughter. This article focuses on a potential inheritance tax (IHT) anti-avoidance pitfall in the […]
Gifting The Family Home – An IHT Trap
It is not uncommon for individuals to give away their family home. For example, an elderly widow moving into nursing care may be in the fortunate position of being able to make a lifetime gift of her residence to her adult daughter. This article focuses on a potential inheritance tax (IHT) anti-avoidance pitfall in the […]
An Inheritance Tax-Free Rental Property Business?
Many individuals would like to have a rental property business, but may be concerned (among other things) about the possible eventual inheritance tax (IHT) liability on the value of the property portfolio. However, a valuable IHT relief may be available to alleviate the problem in certain circumstances. Business property relief (BPR) applies to various types […]