Tag Archives: inheritance tax

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 »

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 »