The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
These types of scheme are particularly suitable for those who have available liquid assets which can be realised without incurring any substantial tax liability (such as Capital Gains Tax). In essence, the money is transferred into the scheme with the tax payer retaining a right to a pre-determined series of cash payments during his or her lifetime. Whatever else remains in the scheme at the time of his death is given away at the outset to his or her children or grandchildren or other beneficiaries. Therefore, there is a lifetime gift to those beneficiaries but the value of it is discounted to take account of the value of the right retained by the tax payer.
The schemes are usually operated by life insurance companies with the funds invested in a single premium investment bond. This structure is ideal for an arrangement where the pre-established return is to be paid back to the person setting up the scheme, because the legislation relating to single premium bonds permits up to 5% of the initial premium paid to be withdrawn tax free each year for 20 y
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The substantial shareholding exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. Conversely, if losses are generated by the disposal and the SSE conditions are
Summary of capital allowances on carsThe current capital allowance rates applicable to cars are as follows:Pool typeDescription of carRateLegislationMain rate poolNew and unused cars with CO2 emissions over 50g/km but not more than 110g/km (to be reduced to 50g/km and below from April 2021)18%CAA
This guidance note explains the general rules surrounding the availability of indexation allowance on the disposal of company assets and provides information on the rebasing rules for assets held on 31 March 1982. For an overview of the general position regarding company disposals, please refer to
Normal due dateSmall companies (including marginal relief companies) are required to pay all of their corporation tax ― nine months and one day ― after the end of the chargeable accounting period.For example, where a chargeable accounting period ends on 31 December 2018, the due and payable date for
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