Accounting and Taxation advice in Hexham, Northumberland

Inheritance

 

Inheritance

Planning to reduce Inheritance Tax is an important part of your overall management of your financial affairs during your lifetime, to protect your hard earned wealth and provide for your family on your death. The ability to transfer any unused balance of the nil rate band between spouses and civil partners on death has improved the situation, but there still remain plenty of circumstances where planning in advance can substantially reduce the final liability.

This is particularly important for property owners, considering that the Government announced a further freeze on the nil rate band at £325,000. This could lift an estate of £1m out of IHT with careful planning

 

IHT - Business Property Relief on Holiday Lets  

  • HMRC has stated that they will be looking more closely at claims to business property relief in respect of furnished holiday let property in which the owner has an active role in the business
  • Previously may have met requirements for Business Property Relief – HMRC view changed such that this may no longer be the case – expect more challenges!
  • Do you need to continue to own your holiday let?
  • A large number of factors can reduce the chances of persuading HMRC to allow Business Property Relief for Inheritance Tax purposes on holiday let accommodation.
  • If you are involved in the holiday letting business and wondering whether to continue, consider contacting us for advice.
     

This is very hard to get and will depend on how you manage your holiday lets.  Let us help you plan.

 

Inheritance Tax and Business Premises

HMRC are challenging the principle of 100% relief for business premises for Inheritance Tax (IHT).
Where a person dies owing monies borrowed and secured against such business premises, HMRC are demanding to know the purpose for which the finance was used before deciding on eligibility for the IHT exemption.
If you think you are at risk you should contact us to let us advise you on this subject.

Wills

Have you made any specific charitable bequests in your will?  Did you know that by changing this slightly it might be possible to reduce Inheritance Tax on your whole estate. Gifts to charity in your will could produce significant tax savings.

If you think this applies to you please contact us for advice.

How cheap Wills can boost care home fees and tax bills

To save costs many people put off making a Will, or draft a simple Will without taking proper advice. The result can be very expensive in the long-run in terms of care home fees and Inheritance Tax.

Consider putting at least some assets in trust, the assets in the trust are ring-fenced and cannot be counted in the means-test or swallowed by the cost of care home fees.  It makes sense to take professional advice before setting up a trust or planning to avoid inheritance tax.  It can be very costly for your family to pick up the pieces after you have died.  Cutting costs in this complex area will inevitably prove penny wise and pound foolish.

Pensions and Inheritance Tax

The world has turned upside down and now you are able to leave your pension in a will IHT free.

Nil Rate Band

With the freezing of the IHT Nil Rate Band IHT planning has never been more important.

This also makes it a very good time to look at doing a Discounted Gift Trust.

 

Latest News

Amazing amount raised for the Great North Air Ambulance Service - £10182 and still rising!

Tricia and staff were delighted to hand over their cheque at the Air Angels Ball at the Hilton,… more >

MAKING TAX DIGITAL (MTD)

Are you ready?

You may well need to prepare your business for this fundamental HMRC change to the tax system.... more >

About Us

Meet the team

Patricia J Arnold & Co Ltd was founded in 1985 to provide accounting and taxation advice... more >

Services

Services

We provide a professional and friendly service tailored to individuals, partnerships... more >