The following Trusts and Inheritance Tax guidance note Produced by Tolley in association with Richard Frimston at Russell-Cooke Solicitors provides comprehensive and up to date tax information covering:
In the UK, Inheritance tax on death may be altered or deferred in a number of ways:
a claim for relief may be made where the value for inheritance tax purposes has decreased (Loss Relief Claims)
varying the way in which the deceased’s estate devolves and electing to treat such variation as having been made by the deceased for inheritance tax purposes (Variations)
a beneficiary disclaims his inheritance so that a different beneficiary becomes entitled, who is then treated for tax purposes as having inherited directly from the deceased (Disclaimers)
a claim may be made by family members and dependants which produce different tax results (Succession Claims)
distributing out of a discretionary Will trust (Trust Distributions)
In a cross border context Variations are generally mere tax fictions and are very unlikely to be recognised in another jurisdiction.
Common law jurisdictions may have more scope for tax planning since assets usually vest in personal representatives rather than direct in beneficiaries. The USA and France are cited below as particular examples, but local advice is always necessary.
Disclaimers are certainly a more universally understood concept. Any relevant time limits are certain to be different and are very easy to miss.
**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
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
What is structures and buildings allowance (SBA)?From 29 October 2018, expenditure on constructing a non-residential building or structure, or in certain cases, expenditure on acquiring such a building or structure, qualifies for an SBA. The following note has been updated for the changes announced
The rent-a-room scheme was introduced in the early 1990s to encourage homeowners to take in lodgers.Fundamentally, the rent-a-room scheme is a relief which means that the rent received by an individual from a lodger (up to a prescribed limit) can be exempt from income tax. If the gross rents are
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.