Wealthy families with complicated inheritance tax (IHT) avoidance schemes are the likely targets of tax ‘hit squads’.
Property investors with portfolios with values exceeding the IHT single/married thresholds of £325,000 and £625,000 are expected to face higher levels of investigation from HM Revenue and Customs. Continue reading Taxman won’t take estate planning on trust. Property investors with portfolios with values exceeding the IHT single/married thresholds of £325,000 and £625,000 are expected to face higher levels of investigation from HM Revenue and Customs.
The best laid Tory plans to boost inheritance tax (IHT) thresholds to £1 million after the election were shelved as a result of pressure from the Lib Dems when forming the coalition government.
That means IHT limits are stuck at £325,000 for the life of this Parliament – probably until 2014. Continue reading Property investors must act to avoid 40% tax bill
Gifting property to families or loved ones without triggering a cluster bomb of taxes is never simple.
Take two sisters who inherited a property from mum and dad.
One of the sisters lives overseas and has no children while the other lives in the UK and has a son with a young family who need somewhere to live. Continue reading Gifting a home to family can cost a fortune
Cashflow is simply defined as regular income. Positive cashflow is when income exceeds expenditure and you make a profit. So that’s important right?
Of course it’s important, but are you in complete control of your cashflow position?’ might be a better question. The truth is there are some things you can’t control. You can’t choose what interest rates will be for example. You may also get caught out with unexpected repairs, problem tenants and rental voids. Continue reading What’s more important, cashflow or liquidity? Mark Alexander reports
We’ve recently embarked on a new initiative to provide Estate Planning advice to people who need it most, whilst at the same time supporting charities that support families who are affected by the devastating news none of us want to hear but most of us experience at some point in our lives. Continue reading The Money Centre’s Estate Planning Partners look to team up with several charities. When people are diagnosed with a critical illness or a degenerative disease plenty of people offer tea and sympathy but very few offer good practical advice
In this article I look at the differences between owning property as joint tenants, tenants in common or as individuals. I also explain why portfolio landlords who are married couples should own half the properties each in single names and how to deal with property ownership which is not structured for optimal tax purposes right now. Continue reading Is your property portfolio ownership structure optimised to enable you to pay the minimum amount of CGT, income tax and IHT?
If your net assets are worth over £325,000 when you die, any money that you leave to anybody other than your husband, wife or civil partner will be taxed at 40%. This includes payouts from your life insurance policy, regardless of whether you’ve made a Will or not. The solution, which is very simple and cost effective, involves completing just one relatively simple document. Continue reading Why up to 40% of your life insurance payout could end up in the hands of the tax man
The UK’s average property value is currently £167,953, according to the Halifax’s latest survey.
It is probably fair to say that every landlord owns at least two properties, their own home plus at least one buy to let property. Therefore, excluding any other assets or life insurance policies, their assets are likely to exceed the £325,000 nil rate band for Inheritance Tax (IHT). Continue reading Landlords could be lining the Tax Mans coffers if they live through the next property cycle. Born free taxed to death? This needn’t be the case for readers of Landlord News
Signing a home over to family is not an easy solution to tax problems or trying to avoid paying for care in your old age.
In many cases, the switch in owners can cause more issues than the action was meant to solve. Continue reading Dangers of signing over property to your family. Quality advice from our tax partner
In these times of austerity, many people are looking at ways to save money but one expense that is well worth the bother is making a will.
Simply, if you don’t have a will when you die, you risk everything you have worked so hard for throughout your life not benefitting those you want to see looked after financially. Continue reading Don’t just leave financial problems when you die. An interesting article from Steve Sims, freelance journalist and author of The Dummies Guide to Property taxation