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!


http://www.fladgate.com/nondomtax/






Thursday, 9 July 2015

Trustbusters


Most English trusts these days specify a ‘Trust Period’ of no more than 125 years.  In practice, this means that someone must have a vested interest in the trust assets (whether that’s vested in possession (i.e. an immediate right to ‘current enjoyment’) or vested in interest (an immediate right to ‘future enjoyment’)) within 125 years. 

Sometimes trusts outstay their welcome, though.  If you have a client desperate to find a way to end a trust, don’t assume there is nothing that can be done.  It is sometimes possible to end a trust without needing the agreement of the trustees (which may not be forthcoming).  Here’s how.

Thursday, 25 June 2015

The insider’s guide to English Pre-Nuptial Agreements

English pre-nups (PNAs) are now an important consideration for families intent on protecting the family wealth, thanks to the 2010 case of Radmacher v Granatino.  Whilst PNAs do not oust the jurisdiction of the English court to have the final say in the matter, they can be determinative when it comes to splitting up wealth in the event of a divorce, as long as they are freely entered into, with a proper understanding by both parties as to the implications of the agreement and make fair provision for each spouse. 


There is a lot of available information on what PNAs are but much less information on just who is making them and why.  I caught up with our family law partner, Teresa Cullen, to ask her some candid questions about PNAs.  I hope you will find the answers illuminating.

Thursday, 11 June 2015

Pre-Owned Assets Tax: the forgotten tax


Pre-Owned Assets Tax (POAT) was introduced in the Finance Act 2004.  Ten years is a long time but, when it comes to tax statute, ‘age cannot wither her’.  This tax has teeth and is capable of biting, not with a tax bill after death, like Inheritance Tax, but, worse, with an annual Income Tax charge that can be a very real drain on cash flow for the living.  What is this beast?  Read on.

Thursday, 28 May 2015

New CGT rules for non residents: what to do now


This is the first UK tax year in which non UK residents will be subject to Non Resident UK Capital Gains Tax (NRCGT) when disposing of their UK residential property to anyone other than their spouse/civil partner or to charity.  Non resident trustees and personal representatives pay NRCGT at 28% on taxable gains and individuals pay 18% or 28%, depending on their taxable UK income and other UK gains in the tax year in which the gain arises.  If non resident companies are not subject to Annual Tax on Enveloped Dwellings – CGT (ATED-CGT), which always takes precedence, they pay NRCGT at 20% instead.  Only closely held companies are affected by NRCGT.

Thursday, 14 May 2015

The Reluctant Will Maker


When you are surrounded by wills on a daily basis (as I am), it’s easy to forget that, for some of our clients, even the thought of making a will is a stressful business, to be avoided at all costs.  This was brought home to me recently when I met a couple of Family Office bankers.  They explained that some of their clients find the whole will making process a bit daunting.  The lawyer asks a lot of serious and scary questions, such as what should happen to the family business, when should the children inherit, who should be their guardians etc. etc. and then nothing gets done!  As a lawyer, this is exactly what I don’t want to see happening, as I know the profound family heartache and disruption that can arise if someone dies without a will (see my blog: ‘Dying without a will – the hard facts’ 3 July 2014; I’m afraid that might indeed scare you).