Legal updates


Nearest but not necessarily the dearest: disinheriting children post Ilott

6 August 2015

The Ilott case has caused a fair degree of furore in the UK press recently. Testamentary freedom in England is sacrosanct in many English citizens’ minds but has the recent Court of Appeal ruling (Ilott v Mitson [2015] EWCA Civ 797) undermined that freedom? And if so, how can anyone ensure that their Will is […]

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The new Inheritance Tax Residence Nil Rate Band

23 July 2015

The Summer Budget Finance Bill (the Finance (No. 2) Bill 2015) has now been published and it contains the draft legislation to implement the new Inheritance Tax (IHT) Residence Nil Rate Band (RNRB). So let’s take a look at the detail of what’s involved. The RNRB can only apply in full if a person’s estate […]

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Trustbusters

9 July 2015

Most English trusts these days specify a ‘Trust Period’ of no more than 125 years. In practice, this means that someone must have a vested interest in the trust assets (whether that’s vested in possession (i.e. an immediate right to ‘current enjoyment’) or vested in interest (an immediate right to ‘future enjoyment’)) within 125 years. […]

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Pre-Owned Assets Tax: the forgotten tax

11 June 2015

Pre-Owned Assets Tax (POAT) was introduced in the Finance Act 2004. Ten years is a long time but, when it comes to tax statute, ‘age cannot wither her’. This tax has teeth and is capable of biting, not with a tax bill after death, like Inheritance Tax, but, worse, with an annual Income Tax charge […]

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New CGT rules for non residents: what to do now

28 May 2015

This is the first UK tax year in which non UK residents will be subject to Non Resident UK Capital Gains Tax (NRCGT) when disposing of their UK residential property to anyone other than their spouse/civil partner or to charity. Non resident trustees and personal representatives pay NRCGT at 28% on taxable gains and individuals […]

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The Reluctant Will Maker

14 May 2015

When you are surrounded by wills on a daily basis (as I am), it’s easy to forget that, for some of our clients, even the thought of making a will is a stressful business, to be avoided at all costs. This was brought home to me recently when I met a couple of Family Office […]

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Pension death benefits planning: a question of control

30 April 2015

Before the recent pension changes were announced, it made sense, for Inheritance Tax (IHT) planning purposes, to request that any death benefits payable from a money purchase private pension on the pension scheme member’s death were paid into a separate trust (a ‘bypass trust’), usually for the benefit of the member’s spouse and family. Structuring […]

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Mixed domicile couples

16 April 2015

Non-doms are in the news again, with one British political party wanting to scrap non-domiciled status if they are elected to be the next Government on 7 May. This sort of headline reinforces the casual view that being a non-dom is always advantageous for UK tax purposes. However, if you are part of a mixed […]

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ATED tips and traps

8 April 2015

Apologies to all my regular Thursday readers but the electrical fire in Kingsway last week disrupted internet connectivity.  Here is last week’s blog.  The next post is scheduled for Thursday 16 April. Financially minded Brits will be focused on the impending end of the British income tax year. Here in the office, we’re also focused on the […]

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How to save Inheritance Tax on your main residence

19 March 2015

Successful Inheritance Tax (IHT) mitigation in respect of the main residence is one of the hardest things to do, as the law currently stands. However, as many people’s most valuable asset is their bricks and mortar, it is a problem that demands some consideration – even if the answer is to do nothing (yet) or […]

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