Timothy Clayton Hutchings penalty for trying to evade Inheritance Tax.
If you make any gifts of money or items of value over £3000 to another person( excluding your spouse or civil partner) these gifts are actually regarded chargeable transfers for inheritance tax purposes. At the point when the gift is made there is no charge as the gift will be considered a potentially exempt transfer (PET). A PET only becomes chargeable if you subsequently die within seven years of making the gift.
Investing in a business to avoid Inheritance Tax
Inheritance tax (IHT) is often called a voluntary tax. The possibility of avoiding or reducing IHT by just giving away assets and surviving seven years seems pretty attractive on the surface but can have implications if income is required or if the beneficiaries divorce.
Helping Your Children Mitigate Capital Gains Tax (CGT) on Second Homes
Current tax legislation states that there is no CGT payable on profits made through the sale of a person’s own home (Principal Private Residence). However if that person owns a second home and makes a profit on the sale of this second home, Capital Gains Tax becomes payable on gains above the annual allowance, currently £11,000.
The yield from Inheritance Tax rises again
The yield from Inheritance tax rose to £3.7bn in 2014, which is an increase of 11% year-on-year. The total of inheritance tax receipts for 2013 was £3.3bn. The increase, say campaigners, is evidence that the controversial tax is hitting an increasing number of “ordinary families”.
How multiple trust planning can save you Inheritance Tax
The new Finance Bill has made no changes to the rules in multiple trust planning where multiple trusts have been established on separate days which contain low value/ exempt transfers.The Bill contains a significant change where multiple trusts have been established on separate days but which then receive additional funds on the same day.
Dying Without A Will
Dying Without A Will in the UK affects your spouse and children. The position of spouses and children in the situation where a person dies intestate (i.e. without having a valid will) has undergone substantial change as of 1st October 2014 when the Inheritance and Trustees’ Powers Act 2014 (IATPA) came into effect.
Using Bare trusts for education fees
For grandparents who are financially secure, gifting money to your grandchildren is one of the most efficient ways of avoiding inheritance tax. However, you may be reluctant to make substantial outright gifts of capital, due to the loss of control and practical concerns about your grandchildren’s a young person’s lack of financial experience and emotional immaturity.
Are your Life Insurance policies in trust?
Most people are advised to take out life insurance when they buy a home to cover the mortgage and also ensure their children are protected in the event of early death. However, more than half a billion pounds is set to be wasted this year in Inheritance Tax as individuals fail to place their life protection policies “under trust”.
The Effect Of Increased House Price On Inheritance Tax
The boom in house prices across the UK and particularly in London may be making many home-owners feel better about their growing wealth. With the value of the average London home set to breach the inheritance tax threshold of £325,000 next year and homes in the South East likely to follow suit by 2019, many people will become higher rate taxpayers for the first time on their death.
Using The Value Of Your Business To Reduce Personal Inheritance Tax
If you spend most of your working time running a small business it is very easy to ignore, or to delay, putting in place suitable provisions to ensure that maximum value can be passed on to your heirs when you are no longer able to run the business. (more…)