Our specialist advisers can provide bespoke advice and their in-depth understanding of this legal area to help you get the most from your CGT, income tax and IHT tax planning.
Inheritance tax is a tax on the estate left when someone dies. There is normally no tax to pay if someone's estate falls below the £325,000 threshold or they leave their estate to a spouse, civil partner or charity.
Inheritance tax often runs alongside capital gains tax if the gifting involves assets on which a gain will arise.
Separately, we can advise on all aspects of inheritance tax planning during lifetime or on death, in particular making best use of exemptions and reliefs.
We can help you decide whether a trust is an effective planning vehicle, and set out the benefits and consequences of using a trust both in lifetime and on death.
Inheritance Tax Planning and the family business
The current tax rules offer several highly favourable tax saving options for owners of a family business. There is no guarantee that these rules will stay in place indefinitely, and now is a good time to take stock of the options available. Whilst the potential for saving tax is highly important, it is important to do what is right for you and we are here to discuss the options with you.
Capital Gains Tax
We can advise in relation to those aspects of capital gains tax which impact individuals, trustees and executors. We can look at planning in advance of a sale or gift of a chargeable asset, and the timing of such transactions. We can also advise on private residence relief, reinvestment relief, business asset relief and entrepreneurs' relief, as well as how best to utilise capital losses against income and other gains.
For those looking at succession and exit we are able to provide guidance and help them with their strategy.
The rules on reporting gains on residential property and gains for non residents have changed over the years and we are able to help with this.
We are able to offer advice on issues relating to income tax such as remuneration planning, utilising income tax losses, gifting to charity and relief for interest paid.
We can also offer to review levels of taxable income with a view to equalising income for tax purposes between spouses and civil partners.
Additionally, we can advise on the tax aspects in relation to making investments under Enterprise Investment Schemes (EIS), Venture Capital Trusts (VCT) and SEIS (Seed Enterprise Investment Scheme).
We are here to support our clients on the wide-ranging and complex legal issues and tax-related challenges of protecting and preserving their global wealth in this modern age of international mobility.
Examples of the areas where we can provide expert and practical advice are:
● Cross-border wealth structuring and the use of offshore holding vehicles, including non-resident trusts, companies, partnerships and foundations, to achieve international estate planning and succession objectives.
● Navigating the compliance and risk management aspects of tax and trust transparency measures and the worldwide reporting rules in order to help private individuals, trustees and professional intermediaries meet their reporting obligations, including under the UK’s Trust Registration Service (TRS), the US’ Foreign Account Tax Compliant Act (FATCA) and the worldwide Common Reporting Standard (CRS).
● Pre-UK residence planning and restructuring for non-UK residents who are relocating to the UK, and emigration tax planning for UK residents who will be leaving the UK.
● Examining an individual's UK tax residence status for a UK tax year using the Statutory Residence Test and advising on the number of days they can spend in the UK without becoming UK tax resident given their personal ties to the UK.
● Analysing an individual's UK domicile status in order to determine whether English or foreign law applies for succession and tax purposes, and consider the impact of any conflicting regimes in their estate planning.
Minimising Capital Gains, Income & Inheritance Tax
There is no bad time to consider capital gains tax and inheritance tax planning. However, it is particularly important to take advice when someone is thinking about buying a new house or selling a business, when reaching retirement, or when receiving an inheritance.
How we can help with your tax planning
We consider the best ways to minimise your inheritance and income tax and capital gains tax obligations and make use of all available reliefs and exemptions. The advice you receive will take into consideration your personal circumstances, from the nature of your estate to the age and circumstances of your intended beneficiaries.
To find out more, do contact us.
We have worked with a number of private client lawyers in different firms over the years; you are the best by far.
The Tax Planning Process
From beginning to end, our specialist advisers will guide you along the planning process so that you benefit from our expertise and knowledge throughout your lifetime.
By assisting with your capital gains, income and inheritance tax planning, we provide reassurance that as much of your estate as possible will reach your beneficiaries by reducing the impact of these taxes. It can be easy to think of tax advice as being academic and impersonal, but we move beyond this, offering advice which is very much tailored to your own particular circumstances and your wishes.
When we recommend a particular action or structure for your capital gains and inheritance tax planning, it is because we believe that it works for you and your personal circumstances, not just from a legal or tax angle, but because it is practical, proportionate and sensible.
We also provide assistance with personal tax compliance.
For further information and to determine how we can help, please contact us.