Non-doms are in the news again, with one British political party wanting to scrap non-domiciled status if they are elected to be the next Government on 7 May. This sort of headline reinforces the casual view that being a non-dom is always advantageous for UK tax purposes. However, if you are part of a mixed domicile couple, where one of you is UK domiciled and the other isn’t, you might disagree. Estate planning is not plain sailing for you.
Wednesday, 8 April 2015
Apologies to all my regular Thursday readers but the electrical fire in Kingsway last week disrupted internet connectivity. Here is last week's blog. The next post is scheduled for Thursday 15 April.
Financially minded Brits will be focused on the impending end of the British income tax year. Here in the office, we’re also focused on the start of another one – the 2015/2016 Annual Tax on Enveloped Dwellings (ATED) tax year begins on 1 April 2015 and, for UK residential properties valued for ATED purposes as worth £2 million or over, owned by ‘non-natural persons’ such as companies, the ATED tax returns and any tax due must be in by 30 April 2015.
Thursday, 19 March 2015
Successful Inheritance Tax (IHT) mitigation in respect of the main residence is one of the hardest things to do, as the law currently stands. However, as many people’s most valuable asset is their bricks and mortar, it is a problem that demands some consideration – even if the answer is to do nothing (yet) or take out life cover written in trust. But if neither of those appeals, what then?
Thursday, 5 March 2015
You have been managing your client’s money for many years when, out of the blue, you are contacted by someone claiming to be your client’s attorney. The attorney is brandishing a copy English Property and Financial Affairs Lasting Power of Attorney (LPA), certified on every page (as it should be) by the donor (i.e. the giver) of the power. So far, so reassuring. But is it safe for you to act on the attorney’s instructions? Here’s some food for thought.
Thursday, 19 February 2015
In my 13 March 2014 blog on ‘Trusts and the EU’s Fourth Anti-Money Laundering Directive’, I highlighted the EU Parliament’s plans to introduce a register of settlors, trustees and beneficiaries of trusts, as set out in the draft of the Fourth Anti-Money Laundering Directive. The Directive has now been finalised and, whilst it looks as though the register will still go ahead, the number of trusts affected will be reduced and trust information will not be placed on a publicly available register.
Thursday, 5 February 2015
The recent case of Hutchings v HMRC  UKFTT 0009 (TC) will be of interest to anyone acting as executor/administrator of an estate and anyone who is a beneficiary. Like the sword of Damocles, HMRC was dangling a tax penalty of £87,000 over the heads of both the executors and one of the beneficiaries – but which one of them would take the rap? The Tax Tribunal’s reasoning for their decision is fascinating stuff.
Thursday, 22 January 2015
As a general rule, Inheritance Tax (IHT) is payable on the net value of assets. In other words, debts are generally deductible when calculating what a person is worth for IHT purposes on death. However, the Finance Act 2013 introduced limitations on the deductibility of certain debts. Judging from a few cases that have come to my attention recently, business owners still remain blissfully unaware of the impact of these changes on them. Time for a quick reminder, then.