Tag Archives: inheritance tax

Inheritance tax: Who went first?

For married couples (or civil partners), when one spouse dies their estate is administered in accordance with their will (if valid), or under the law of intestacy. Any inheritance tax (IHT) liability will be calculated accordingly. Simultaneous deaths What happens if both spouses died in circumstances where it is not known which of them passed… Read More »

Gifting shares – Don’t make a ‘reservation’!

It is common for shares in a family company to be passed down the generations. However, anti-avoidance rules dealing with ‘gifts with reservation’ (GWR) are a potentially nasty inheritance tax (IHT) trap. Cake and eat it The GWR provisions (FA 1986, ss 102-102C; Sch 20) are broadly designed to prevent an individual seeking to reduce… Read More »

Disincorporation and downsizing (Part 2)

Disincorporating a business has potential tax implications for the company and its shareholders. The first part of this article looked at tax implications for the company. In part two, tax implications for individual shareholders are considered.  Business owner(s) may well perceive there to be a ‘double tax charge’ on the basis that the company is… Read More »

IHT and holiday lettings: A (rare!) business property relief success

Inheritance tax (IHT) relief at the rate of 100% is an attractive proposition. Business property relief (BPR) is available to business owners if certain conditions are satisfied. BPR at the 100% rate applies to ‘relevant business property’ including a business or interest in a business (in certain other cases, BPR is available at 50% instead).… Read More »

IHT: Is your property related?

Valuing assets such as land and buildings is potentially tricky for various tax purposes, including inheritance tax (IHT) on making a chargeable lifetime transfer, or on death. One area of potential difficulty is valuing joint interests in land and buildings. For example, a property in London may be jointly owned, such as by spouses or… Read More »

Gifts to and from a company: Don’t forget IHT!

Transactions between a company and its owners are relatively common, particularly in owner-managed and family companies. Where an asset is being transferred to or from a ‘close’ (i.e. broadly a closely-controlled) company, most taxpayers (or their advisers) will normally be concerned about whether there are any potential capital gains tax or corporation tax implications for… Read More »