Inheritance Tax

Tax Planning: What to Consider When You’re Thinking Of Selling Your Business

Tax Planning: What to Consider When You’re Thinking Of Selling Your Business

One of the key issues for business owners planning to retire or sell a business centres on how best they plan their tax liability. To maximise the best outcome business owners should plan well in advance. In our experience, it is never too early to consider financial planning and whilst ‘younger’ businesses may not place this at the top of the agenda right now, the reality is that planning at an early stage can be structured to help with current tax liabilities as well as those on retirement or sale. Capital Gains Tax Both Capital Gains Tax (CGT) and Inheritance Tax (IHT) need to be considered carefully as part of the planning exercise and examined in close detail – without appropriate planning for these two very real scenarios business owners might find themselves or their ‘estate’, handi... »

Family Businesses Unaware of Inheritance and Capital Gains Tax Liabilities

A third of family-business owners are unaware of their domestic inheritance tax and capital gains tax (CGT) liabilities, research from PricewaterhouseCoopers (PwC) has found. In PwC’s survey of more than 1,600 family-owned small and medium-sized businesses across 35 countries, two thirds of UK firms were also unaware of the international inheritance tax or CGT that they could incur, typically by owning premises abroad.  According to the poll, many UK firms are less well-prepared than their global counterparts. In Spain, 91% of firms were aware of their domestic Capital Gains Tax implications, while 85% of Brazilian firms and 73% in Germany were up to speed on their tax exposure. Mary Monfries, tax partner at PwC, said the results were “concerning”, saying: “Tax charges incurred throu... »

Stamp Duty Land Tax - Budget 210 - GT

Budget 2010

Introduction Alistair Darling’s third budget, Budget 2010, is the last budget before the next General Election, the last budget of the current parliament. Budget 2010 is the first budget since the UK has emerged from possibly the worst global recession in 60 years. »

Inheritance Tax

Inheritance Tax (IHT) is usually paid on assets held at death but can also apply to trusts or gifts made within someone’s lifetime and also trusts or gifts within seven years of death. According to Her Majesty’s Revenue and Customs (HMRC) most estates do not have to pay inheritance tax because they are valued at less than the threshold which is currently £325,000 (Tax year 2012-2013). Any amount over the threshold is payable at a rate of 40% or reduced rate of 36% if the estate qualifies as part of a charitable donation. For married couples and civil partners the threshold can be as high as £650,000 if one partner transfers the "nil rate band", their unused Inheritance Tax threshold, to their other half when they die. Inheritance Tax Exemptions and Reliefs... »

Discretionary Trust, Wills & Inheritance Tax

Although any unused nil rate band is transferred to a surviving spouse or civil partner, making provision for a discretionary trust in your will could still be worthwhile. How do the inheritance tax rules work? The first slice of any individual’s estate, including gifts that they have made in the last seven years, is generally free of inheritance tax. This slice, referred to as the ‘nil rate band’, was increased to £325,000 from 6th April 2012. Inheritance tax is charged at 40% on the amount that exceeds the nil rate band. Any unused nil rate band can now be transferred to a surviving spouse or civil partner. This means that where the second death occurs on or after 9th October 2007, the benefit of any unused nil rate band on the death of the first spouse is transfe... »