Tax rules

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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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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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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IHT planning for business owners: business finance

22 January 2015

As a general rule, Inheritance Tax (IHT) is payable on the net value of assets. In other words, debts are generally deductible when calculating what a person is worth for IHT purposes on death. However, the Finance Act 2013 introduced limitations on the deductibility of certain debts. Judging from a few cases that have come […]

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Pilot trusts post the Finance Bill 2015

18 December 2014

One of the bigger surprises in this year’s Autumn Statement was the news that the much consulted upon new ‘Settlement Nil Rate Band’ has been dropped. One of the reasons for proposing a Settlement Nil Rate Band was to make the use of multiple trusts less attractive for Inheritance Tax (IHT) mitigation purposes. Each trust […]

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CGT Principal Residence Relief update

4 December 2014

My 24 April 2014 blog reported that buried within the Government’s March 2014 consultation on extending Capital Gains Tax (CGT) to non UK residents was a change to CGT Principal Residence Relief (PRR) affecting UK residents. Last week, the Government published its response to the consultation and confirmed that PRR is set to change. The […]

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Best will for… Part 3: most married couples

9 October 2014

I like the simple things in life. When it comes to wills, most of my married couple (and civil partnership) clients want to keep things simple too. ‘Everything to my spouse and then to my children equally, please’ is a common refrain. There is nothing wrong with that. The only problem with keeping things that […]

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Carry On Giving: how to manage the CGT bill on gifts

31 July 2014

With asset values on the rise, many of my clients’ thoughts are turning to Inheritance Tax (IHT) planning. That can sometimes lead to thoughts about giving away assets to children in lifetime in the hope of surviving seven years. However, it seems even the best laid IHT mitigation plans can come unstuck when Capital Gains […]

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