ARCHIVED: This Practice Note has been archived and is not maintained. With effect from 1 April 2017, the worldwide debt cap rules have been repealed and replaced by the corporate interest restriction (CIR) rules. The worldwide debt cap rules outlined in this Practice Note should therefore only apply to periods prior to 1 April 2017, the date that the CIR rules came into force. In respect of any periods straddling that date, the debt cap rules should apply to the notional period ending on 31 March 2017. For more information on the CIR, which replaces and repeals the debt cap rules, see Practice Note: Corporate interest restriction. Tax relief for the financing expenses of UK resident companies which are member of large groups may be restricted (ie disallowed) where, broadly, the amount of the group's net debt based in the UK exceeds 75% of the group's gross debt (known as the gateway test). The debt cap applies to periods of account commencing on or after 1 January 2010. The

ARCHIVED: This Practice Note has been archived and is not maintained. With effect from 1 April 2017, the worldwide debt cap rules have been repealed and replaced by the corporate interest restriction (CIR) rules. The worldwide debt cap rules outlined in this Practice Note should therefore only apply to periods prior to 1 April 2017, the date that the CIR rules came into force. In respect of any periods straddling that date, the debt cap rules should apply to the notional period ending on 31 March 2017. For more information on the CIR, which replaces and repeals the debt cap rules, see Practice Note: Corporate interest restriction. The worldwide debt cap rules (also referred to as the debt cap or WWDC or the main debt cap rules): • compare (on an objective basis) the net borrowing costs of the UK part of a group (referred to as the tested expense amount or TEA) with the gross borrowing costs of the group as a whole (referred to

The transferable nil rate band (TNRB) is only available if it is claimed in accordance with section 8B of the Inheritance Tax Act 1984 (IHTA 1984). See Practice Note: IHT—nil rate band (NRB) and transferable NRB, in particular example 3 in section ‘Calculating the TNRB‘, which covers a similar factual scenario to that posed by the Q&A. As Practice Note states, if the TNRB is not claimed by B's personal representatives (PRs), it is possible for C's PRs to claim it on behalf of B's estate, provided that it does not affect any IHT that was due

On the termination of the immediate post death interest, S became absolutely entitled to the trust property and it is therefore deemed to have been disposed of by the trustees and immediately reacquired by them as bare trustees for S. Since this happened on the death of the person entitled to the immediate post death interest, no gain arises. The trust property has been ‘re-based’ for capital gains tax (CGT) purposes at its value when W died, without

We have assumed that • the Property Power of Attorney is a Property and Affairs Lasting Power of Attorney (LPA) • the attorneys and trustees are different people Incapacitated trustees While an attorney under a Property and Affairs LPA has wide powers to deal with the donor’s assets and investments, including their interest in any property, the general principle is that they cannot act on behalf of the donor in the donor’s capacity as trustee. In such circumstances, it is usually necessary to remove and replace the incapacitated trustee. In

Where an estate is intestate, it is necessary, generally speaking, for an administrator to be appointed before the estate can be properly administered. However, it may be possible for a putative administrator to enter into agreements which bind the estate before the letters of administration are issued by virtue of the doctrine of relation back, but it will depend on the exact circumstances of the case. For example, the doctrine of relation back

We are not aware of any statutory or judicial guidance on the availability of agricultural property relief (APR) to a trust within the relevant property regime where there had been a prior qualifying interest in possession in the circumstances described in the question. However, we would make the

Section 46(1)(v) of the Administration of Estates Act 1925 (AEA 1925) sets out the persons entitled to an intestate's estate where the intestate leaves no spouse or civil partner, no issue and no parent. In that case, the residuary estate of the intestate shall be held in trust for a series of classes of person in priority order, on the basis that if one class contains at least one person who is alive at the intestate's death, that class will receive the whole of the residuary estate. The first provision is that the residuary estate

Grant of Letters of Administration A person who is entitled to be administrator of the intestate’s estate accepts office by applying for and obtaining a grant. Every person to whom administration of estate of the deceased is thereby granted, has, subject to the limitations contained in the grant, the same rights and liabilities and is accountable in the same manner as if he were the executor of the deceased. See: Personal representatives—overview for further information. The persons to whom distribution of the estate must be made are set out in the table in section 46(1) of

The appropriate course of action where beneficiaries are not cooperating with the administration of the estate will depend on the specific circumstances of the case, for guidance, see: • Practice Notes: ◦ Failure of gifts—disclaimer and acceptance ◦ Missing beneficiaries and intestacy with no surviving relatives—see main heading:

This Q&A assumed that: • the children will execute a deed of variation to create the life interest in the estate for the surviving partner, with remainder to the children • the children are not the children of the deceased’s surviving partner • the children are all adults and have full mental capacity If the children execute a deed of variation which falls within section 142 of the Inheritance Tax Act 1984 (IHTA 1984) to give their respective beneficial interests in the estate to an interest in possession trust for their deceased parent’s unmarried partner/cohabitee, the deceased would be treated for all inheritance tax purposes

Section 46 of the Administration of Estates Act 1925 (AEA 1925) makes provision for statutory succession in the event of an intestacy. The section is commonly referred to as the intestacy rules, and provides a framework for the distribution of the estate of a deceased who died without a Will. In this scenario, the estate of the deceased will pass pursuant to AEA 1925, s 46(1)(iv) to their mother absolutely, as the deceased has died without a spouse/civil partner or issue. Although AEA 1925, s 46(2A) provides that where the intestate’s