The Supreme Court has partially overturned the Court of Appeal in the case of Parry and others (see the press release and decision). While the case concerned legislation and practice with respect to pension funds now superseded for dispositions made...
It seems that HMRC is immune to the very behavioural techniques which it has so enthusiastically adopted (such as the use of “nudge letters”) to influence taxpayers’ behaviour in complying with the UK tax legislation. In our blog on nudge...
The upper tribunal (UT) has turned down HMRC’s appeal in Vigne against the First-tier Tribunal (FTT) decision that “DIY-Plus” livery services provided to clients who stabled their horses with the late Mrs. Vigne were enough for inheritance tax (IHT) business property relief...
Included in the draft finance bill legislation issued on 6 July 2018 on those measures affecting tax administration, were provisions relating to extension of offshore time limits for assessing certain taxes, extension of the security deposit regime, and profit fragmentation....
The UK Government has introduced a raft of legislation to address tax evasion and latterly tax avoidance. This has included; The Requirement to Correct legislation which has introduced punitive offshore penalties and extended assessing time limits for Income Tax, Inheritance...
In its pursuit of stamping out tax avoidance HMRC complained to the Advertising Standards Authority (ASA) about misleading tax claims by the promoter, CDP Tax & Wealth Limited, which trades under the name Fiducia Wealth and Tax (FWT). FWT’s website...
Recent changes in the domicile rules affecting an individual’s inheritance tax (IHT) non-domicile status can have serious effects on trusts they have set up. Overseas assets settled on trust when the settlor was non-domiciled are excluded property for IHT purposes...
One of the less well-known and sometimes overlooked tax exemptions is the conditional exemption (CE) from inheritance tax (IHT) and capital gains tax (CGT) for buildings of outstanding historical or architectural interest. For this exemption to apply you don’t have...
The personal representatives of the estate of Maureen W. Vigne (deceased) have successfully appealed against HMRC’s refusal of inheritance tax business property relief (BPR) The case turned on whether MRs Vigne had run a business that required land or was...
We now know that inheritance tax benefits previously associated with the use of corporate structures to hold UK residential property will be removed with effect from 6 April 2017. The new rules treat the interest in the holding entity as...
The UK government announced on 13 July that changes to the tax treatment of individuals who are resident in the UK but are non-UK domiciliaries, and which were put on hold because of the UK General Election, will now go...
Power Adhesives Ltd. almost came unstuck when, under the guidance of their advisers, the Company adopted an inappropriate arrangement to remove the possible problem of having to repay a director’s loan account on death. The arrangement made, for non-tax reasons,...
A company almost came unstuck when, under the guidance of their advisers, the Company adopted an inappropriate arrangement to remove the possible problem of having to repay a director’s loan account on death. The arrangement made, for non-tax reasons, would...
Press coverage of opportunities afforded by falling interest rates has included reference to the possibility of using borrowing to fund lifetime gifts that, as potentially exempt transfers (PETs), completely escape the donor’s IHT estate so long as the donor survives...
The Government has had second thoughts about the new IHT hallmarks for DOTAS. The result is a new proposal of two, not three hallmarks based on the original proposals. These represent a more realistic understanding of the issues in IHT but...
The progress of the additional nil-rate band for residences has been rather slow and tortuous: first the basics of Residence nil-rate band (RNRB) were set out in the Summer Budget and Finance (No.2) Act 2015 but at that time nothing...
The Draft Finance Bill 2016 extends the deemed domicile rules announced for other taxes to IHT, so that for once the rules are consistent across all taxes. The content of the DFB shows minimal change from the announcements made...
The case of Barclays Wealth Trustees (Jersey) limited v HMRC ([2015] EWHC 2878 (Ch)) has ruled that property that was originally IHT ‘excluded property’ but ceased to be so when it was transferred to another settlement, in which it was...
The Summer Finance Bill (SFB) includes the new Inheritance Tax Act 1984 sections 8D to 8M and consequential amendments to other sections introducing the additional nil-rate band for residential property. The new additional nil-rate band is referred to in the...
From 6 April 2017 a new additional nil-rate band (we’ll call it the ANRB) will be available on residential property left to children and remoter descendants but the change will not come fully into effect until 6 April 2020. Like...
On 6 April 2017 a simplification will be made that, for once, doesn’t flout the Trades Descriptions Act. The new deemed domicile rule will apply for all personal and trust taxation purposes unless something goes seriously wrong in the consultation...
The Chancellor claimed that the current rules for the taxation of non-domiciled individuals had ‘an important place’ and would not be dumped outright before announcing significant proposals to the current regime to make the UK tax system fairer. It’s difficult...
3rd July 2015 is National Employee Ownership Day in the UK. The purpose of EO Day is to highlight the benefits of employee ownership to business, whether this is direct ownership, using share plans, or indirect ownership using an employee ownership...
The pre-owned assets tax (POAT) was ten years old on 6 April 2015 but no party was held because nobody would have attended. Introduced as a countermeasure against inheritance tax avoidance schemes, POAT applies to anyone who disposed of an...
The case of Routier and Venables v HMRC concerned a bequest to charity under the will of C and possible relief from inheritance tax (IHT) under IHTA 1984 s 23. (more…)
The Confederation Fiscale Europeenne (CFE) (a pan European body representing tax professionals) has published examples of specific examples of cross-border IHT problems encountered by its members. (more…)
The proposals to simplify trust exit and ten-year anniversary (TYA) charges, due to come into effect on 6 April 2015 have been modified in the consultation document Inheritance tax: A fairer way of calculating trust charges issued by HMRC on...
The new Inheritance and Trustees’ Powers Act 2014 (ITPA 2014), due to come into force on 1 October 2014 includes changes affecting how: intestate estates are distributed; and trustees can distribute income and capital to beneficiaries These changes apply to...
The major part of the reform of IHT on trusts concerns the ten year charge (formally the “principal charge”) on trusts. However, proposals made in the 2013 Budget would have meant that no matter how many trusts a settlor might...
With effect from Royal Assent to FB 2014 a refinement to the FA 2013 provisions restricting relief for liabilities will close a loophole available to non-UK resident non-UK domiciliaries. The new s 162A IHTA 1984, introduced by FA 2013, restricts...
Individuals who have established trusts need to be aware of forthcoming changes to their tax treatment, due in April 2015. Those looking to use trusts as part of a wealth management/succession plan will need to consider whether the use of...
The first phase of the changes aimed to simplify the way in which inheritance tax (‘IHT’) is charged on trusts will be introduced from April. Their stated intention is to be tax neutral but they look likely to increase trusts’...
Best (Buller’s executor) v RCC (UKFTT 03217) follows the example set in HMRC v Lockyer, executor of Pawson in refusing BPR on a property letting business. Best differs from Lockyer in facts but not in principle. The differences are that:...
The professional bodies have issued a technical release on the availability of BPR in two situations. Firstly, where shares in unquoted trading companies are held by partnerships or LLPs. Secondly, where surplus cash is held by businesses and companies, which...
HMRC have lost in the Court of Appeal in Buzzoni v RCC, re the estate of Lia Kamhi deceased, a case they won in the First and Upper Tier Tribunals. ‘Ingram’ carve-out schemes whereby the donor of an asset, usually...
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