Peter Nellist highlights a key exemption to inheritance tax and discusses the importance of a lasting power of attorney ‘The proper use of a resolution, as opposed to relying on a pattern building up from past gifts, can make it possible for the s21 exemption to apply to what otherwise HMRC would argue was a …
Continue reading "IHT: Showing resolved intent"
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Peter Nellist queries the method by which HMRC conduct property valuations for inheritance tax purposes ‘IHT is a tax that many who will be paying it regard as unjust as it taxes accrued wealth that has already suffered income and capital gains tax… It is an added injustice to restrict reliefs without fully publicising why …
Continue reading "IHT: A fair share?"
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Catherine Ball examines the argument for reform of inheritance tax relief after two revealing reports ‘The NAO’s report, published in April, shows that the value of these two reliefs has grown faster than the amount of IHT collected. APR and BPR were two out of the four tax reliefs that had increased by more than …
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Peter Nellist gives the lowdown on the proposed IHT exemption for emergency services personnel ‘With IHT anticipated to affect about 10% of the population, coupled with the current push by HMRC to maximise tax receipts, the existing exemption is a standard bearer for what is morally right.’ Tucked away in para 2.89 of HM Treasury’s …
Continue reading "IHT: The humane approach"
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Anna Moore sets out the next stage in the simplification of trust tax charges ‘HMRC have confirmed that they are “committed to ensuring fairness in the tax system and reducing undue burdens on trustees and their advisers”.’ In December 2013, HM Revenue & Customs (HMRC) published a summary of the responses received to their second …
Continue reading "IHT: Managing your exit"
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Jo Summers examines HMRC’s consultation on relevant property charges for trusts As the consultation document explains, there is clearly a need to examine the relevant property regime. It is complicated, difficult to administer and probably does not raise much tax. On 13 July 2012, HMRC published a consultation on the inheritance tax (IHT) charges that …
Continue reading "IHT: Ever wanted the chance to write tax legislation?"
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Sarah Lee outlines the ramifications of the 10% IHT relief for charitable giving By directing money away from central government and into charities’ hands, the government aims to empower these organisations to take on more responsibility in society.’ On 10 August 2012, HMRC produced new guidance on the 36% reduced rate of IHT for estates …
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Elizabeth Wilson examines the lessons of McCall & anor v HMRCC The case of McCall & anor v HMRCC [2011] provides useful guidance on IHT business property relief for ‘hybrid’ landowning businesses such as seasonal grazing ‘lets’ where the landowner remains in legal and factual occupation of the land used in the business, but is …
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Peter Nellist outlines ten steps to securing the IHT income exemption ‘A major objective should be to unite and illustrate the settled pattern of the past and propose a pattern as regular as possible for what is to be the future use of the exemption.’ It can be difficult to obtain acceptance by HMRC that …
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Wills & Trusts Law Reports | November 2011 #114Christopher Swain (C) built up a very successful business and held 72% of the shares in a group of companies in which each of his four daughters also held 5.3% of the shares. He was advised by a small firm of chartered accountants who prepared tax returns for him, the company and the family trusts and at times for each of his daughters and by a small firm of solicitors who prepared his will, dated 17 January 2006. C decided to sell his company to the management and to use Mills & Reeve, a large full-service law firm (the firm) to advise him and his daughters on the MBO. In June 2006 ...
