The following Trusts and Inheritance Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:
This guidance note looks at aspects of IHT planning in relation to landed estates.
The term ‘landed estate’ refers to a large house in the country with an extensive area of land around it. Typically, the estate will cover farming and business interests as well as residential accommodation for the owner and tenants. Landed estates may include parkland, woodlands, and property of historical and cultural importance.
A range of inheritance tax reliefs are relevant:
Agricultural property relief (APR)
Heritage property ― conditional exemption
Detailed conditions for these individual reliefs and planning points are found in the guidance notes indicated.
Almost by definition, the major part of the wealth in a landed estate will be held in its land and buildings. Traditionally, the property will have been passed down through generations of the same family, and there will be an expectation, or at least a hope, that the estate can be held together as a single entity. In this context, relief from inheritance tax on a transfer of value is of primary importance since a high tax liability could force sales of the properties and a break-up of the estate.
Landed estates are characterised by a diversity of properties and pursuits. In other circumstances, APR or BPR will apply to ‘a business’ or ‘a farm’. One owner may hold several qualifying properties but they are nevertheless distinct and separate. By contrast, a landed estate consists of a range of interdependent business, farming and private interests. Even a quite small landed estate could include a farm, a shop, an exhibition, a private house, a campsite, etc. It is important to consider the application of the reliefs both to the various constituent parts of the estate and to the estate as a whole.
A landed estate, particularly if it has been in the same family for generations, may have a complex ownership structure. Property within the estate may be owned personally or in partnership by members of the family. In
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
The basic rule is that all benefits provided to an employee by reason of their employment are taxable unless there is a specific exemption or other rule that means they are not chargeable to tax.ExemptionsThe main exemptions for employee benefits are in ITEPA 2003, ss 227–326B (Pt 4).Below is an
Income and gains may be taxable in more than one country. The UK has three ways of ensuring that the individual does not bear a double burden:1)treaty tax relief may reduce or eliminate the double tax 2)if there is no treaty, the individual can claim ‘unilateral’ relief by deducting the foreign tax
From 6 April 2015, an individual can elect to transfer 10% of the personal allowance (£1,250 in 2020/21 and 2019/20) to the spouse or civil partner where neither party is a higher rate or additional rate taxpayer. The legislation calls this the ‘transferable tax allowance’ but the GOV.UK website
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.