Insights

Is Inheritance Tax Being Reformed?

The UK has arguably one of the most generous Inheritance Tax (IHT) regimes in the world. Generally, the current Potentially Exempt Transfer (PET) regime enables wealth to be passed down the generations by way of lifetime gift without the beneficiary paying any Inheritance Tax (IHT) provided the donor survives the gift by seven years. This is a very general summary of the PET regime, and ...

How to use trusts to pass on family wealth

Question.   I am approaching my mid sixties and I want to pass some wealth to my adult children but I would like to retain some control over these assets. Can I use trusts to do this?   Answer.   Trusts are a long established mechanism which allows individuals to benefit from the assets without assuming the legal ownership of those assets as the trustees have day to day control over ...

Is your business ready for Making Tax Digital?

Question.   I have read about the changes coming through Making Tax Digital. What are these and are there any benefits for my business?   Answer.   Making Tax Digital (MTD) is part of the government’s plan to make it easier for businesses to stay on top of their day-to-day finances. HMRC wants to be one of the most digitally advanced tax administrations in the world – improving efficiency, effectiveness ...

What workplace benefits are taxable?

Question.   I am keen to introduce a flexible, tax efficient remuneration package for key staff within my company so I am reviewing existing employees’ remuneration packages for tax and NIC efficiency. Are all benefits given to employees taxable, or are some tax free? It would be very helpful to know what tax free benefits we can provide to our staff.   Answer.   Today the remuneration of many ...

Is Buy to Let still attractive?

Question.   I have built up some spare cash and was thinking of investing it in residential property Buy to Lets. What are the tax implications if I do this?   Answer.   Income tax is payable on the rents received after deducting allowable expenses. Currently allowable expenses include mortgage interest, repairs, agent’s letting fees and an allowance for furnishings. Changes were announced in the Summer Budget which impact on the ...

Director loans and their tax implications

Question.   My business is performing well and it has built up some cash reserves. I am considering using money from my own company to build up a personal share portfolio. It is my intention to pay the company back from profits I make on the stock market. Rather than take additional dividends or salary I might borrow the money from my company. What are the tax ...

Changes to rates for staff pension payments

Question.   I auto-enrolled my staff into an auto-enrolment qualifying workplace pension in the middle of last year and recently I received correspondence that contributions are changing. What are my obligations?   Answer.   As you are aware and to encourage more people to save in pension schemes, the government has placed greater responsibility on employers to provide access to pension provision. Up until 1 October 2012 there was no ...

IHT Planning

Question.   I suspect Ken Dodds had a chuckle when he married his long term partner of 40 years hours before his death in order to avoid an Inheritance tax bill. Does such ‘death bed planning’ really work or is it better to do tax planning a little earlier?   Answer.   Ken Dodds certainly had the last laugh when he married his long term partner, to avoid Inheritance tax (IHT) ...

Last minute tax planning

Question.   With the tax year end fast approaching, is there any last minute tax planning that I should be considering?   Answer.   With approximately 2 weeks to go to the end of the UK Income Tax Year on 5 April 2018 there is still time to undertake income and capital gains tax (CGT) planning to avail of any reliefs still unused. The Capital Gains Annual Exemption is currently £11,300 ...

Tax relief on pension payments

Question.   My employer has enrolled me into a pension scheme. I am a higher rate taxpayer and when I look through the paperwork from the scheme provider it says I can get tax relief on the pension contributions I make via relief at source. Could you explain this to me?   Answer.   Pension contributions are one of the most significant tax planning opportunities available. Pension tax relief ...