Tag Archives: inheritance tax

Trust for the kids: What could possibly go wrong?

A parent with sufficient means may sometimes wish to transfer an income producing asset. For example, mother may wish to transfer investment property in London into a discretionary trust for her daughter (e.g. to help cover university costs or supplement income when buying her own home and/or starting a family). However, there are various tax… Read More »

Everything counts – or does it?

A look at some exceptions to the inheritance tax ‘gifts with reservation’ anti-avoidance rules. The inheritance tax (IHT) ‘gifts with reservation’ (GWR) provisions are anti-avoidance rules. They are basically designed to prevent ‘cake and eat it’ situations (i.e. giving away an asset in the hope of surviving at least seven years in order for the… Read More »

Home-a-loan!

It is difficult to think of a scheme more strongly disliked by HM Revenue and Customs (HMRC) than the ‘home loan’ (sometimes referred to as the ‘IOU’) scheme for inheritance tax (IHT) purposes. What was it? The home loan scheme reached the peak of its popularity in the late 1990s and early 2000s. Broadly, the… Read More »

One good ‘deed’…

The expression ‘putting someone on the property deeds’ is commonly used to describe changing the legal ownership of a property, such as an individual’s home. ‘Putting someone on the property deeds’ often involves giving the dwelling, or an interest in it, to a spouse (or civil partner) or close family member. There could be several… Read More »

Don’t forget goodwill!

The valuation of assets can be important for tax purposes. For example, a valuation may determine the amount of inheritance tax (IHT) payable on a lifetime transfer (e.g. the transfer of an investment property to a discretionary trust), or on an individual’s death estate. In addition, an asset valuation may be needed to determine the… Read More »

The dark art of property valuation!

The valuation of assets for tax purposes is a tricky business. It has been called a ‘dark art’; a specialist area for experts, not to be dabbled in by other professional advisers. Get help! Even HM Revenue and Customs (HMRC) officers don’t normally engage in tax valuations of assets; they enlist the help of specialists… Read More »