Being an Executor: Can you be liable for Inheritance Tax?
Before you agree to taking on the role of an Executor it’s important to be aware of all the potential responsibilities that it entails. Being asked to become an Executor for a friend or a relative can seem flattering, indeed quite an honour, but not everyone understands exactly what they are taking on.
The Cost of Poor Tax Advice
We were contacted recently by potential clients with an interesting situation. They wanted to review their likely inheritance tax position. In 2003 they had asked a solicitor to put their home into a trust in order to avoid possible care home fees.
Wealth Inequality UK
Wealth inequality is by no means exclusive to the UK, however we do have a very high level compared to other developed countries. Typically, households in the bottom 10% of the population have on average a disposable income of £9,644 after direct taxes.
New Record High For Inheritance Tax Payments
New figures from HMRC show an alarming 13% year on year rise in Inheritance Tax receipts, raking in a staggering £5.3 billion to the end of February. These record sums forced Chancellor Phillip Hammond to instigate reforms in the notoriously complex IHT system.
Rules for Inheritance Tax Baffle Older Generations
Inheritance Tax is often described as incomprehensible. Executors often complain to Probate lawyers that the deceased could have done more to save Inheritance Tax. Of course, by that stage, it is too late to do anything about it. One solution is to take full advantage of the rules on gifts, which is something older generations seem perhaps reluctant to do.
Inheritance Tax Review Ordered by the Government
The Chancellor of the Exchequer, Philip Hammond, has recently written to the Office of Tax Simplification (OTS) requesting a review of the regime surrounding UK Inheritance Tax (IHT). He asked the review to focus on the technical and administrative issues with IHT as well as practical issues around routine estate planning and disclosure.
Inheritance Tax Planning for Cohabiting Couples: 4 major (neglected) issues
In a recent YouGov survey about cohabitees legal rights, 35% of cohabitees either did not know what legal rights they had or believed that once they had lived together for a year they automatically had the same rights as married couple. In fact, if a relationship breaks down, the court cannot reallocate resources between them on the grounds of fairness and neither party is able to claim maintenance from the other for their own benefit.
Selling your business: 3 important things to consider
One of the main issues for business owners when planning to sell their business/retiring is the lack of planning of the possible tax liabilities. In order to achieve the best outcome, you should plan well ahead of that time.