Thursday, 1 October 2015

IHT Same Day Additions – where are we now?

Does using multiple trusts save Inheritance Tax (IHT) still, or has IHT planning with multiple trusts been effectively abolished?  When the second Finance Act of 2015 comes into force later on this autumn, we will finally have the answer.

Thursday, 17 September 2015

Losing the plot over CGT principal residence relief

In the UK, we take for granted that if we sell our main home, we don’t have to pay Capital Gains Tax (CGT).  Yet, selling a home is still a disposal for CGT purposes.  The main thing that prevents a CGT bill from being triggered by a sale of the home is CGT principal residence relief (PRR).  As it can prove to be such a valuable relief, it’s worth any homeowner getting to grips with PRR.  Otherwise, if your home comes with a bit of land for example, you could end up with an unwelcome CGT bill if you decide to sell up.  That was the fate of Mr and Mrs Fountain, in the recent case of Fountain v HMRC ([2015] UKFTT 0419 (TC)). 

Thursday, 3 September 2015

Calling all EU asset owners: you’ve got mail (from Brussels)

Finally, the EU Succession Regulation (Brussels IV) is fully in force.  It’s been a long time coming.  Part of it came into effect as long ago as 2012 but in recent months, as 17 August 2015 (‘coming into force’ day) approached, there has been much more discussion about what Brussels IV is going to mean in practice.  Essentially, if you or your clients hold assets in virtually any EU state, or have a residency or nationality connection with an EU state, Brussels IV affects you.  This blog does not attempt to explain what Brussels IV is (see my September 2013 blog for the basics).  Instead, it gives the latest thinking on how Brussels IV might apply in practice and what to do now.

Thursday, 20 August 2015

Use it or lose it: Government announces early closure of LDF

The UK Government has recently announced that the beneficial terms of the Liechtenstein Disclosure Facility (LDF) will cease on 31 December 2015 (the facility had previously been due to run until April 2016). The LDF is a tax disclosure process through which individuals can bring their tax affairs up to date with HMRC on favourable terms and in particular benefit from reduced penalties and full immunity from criminal prosecution.

Thursday, 6 August 2015

Nearest but not necessarily dearest: disinheriting children post Ilott

The Ilott case has caused a fair degree of furore in the UK press recently.  Testamentary freedom in England is sacrosanct in many English citizens’ minds but has the recent Court of Appeal ruling (Ilott v Mitson [2015] EWCA Civ 797) undermined that freedom?  And if so, how can anyone ensure that their Will is upheld and respected after death?

Thursday, 23 July 2015

The new Inheritance Tax Residence Nil Rate Band

The Summer Budget Finance Bill (the Finance (No. 2) Bill 2015) has now been published and it contains the draft legislation to implement the new Inheritance Tax (IHT) Residence Nil Rate Band (RNRB).  So let’s take a look at the detail of what’s involved.

Monday, 13 July 2015

Budget bonus: Briefing notes on changes to non-dom taxation and additional IHT nil rate band

Below you will find links to some client friendly notes on the proposed non-dom taxation changes and the introduction of the new additional Main Residence nil rate band for Inheritance Tax, all announced in last Wednesday's Summer Budget. 

No doubt these significant proposals will be the subject of future blogs, so watch this space!