The following Trusts and Inheritance Tax guidance note Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP provides comprehensive and up to date tax information covering:
In their Wills, many married couples and civil partners (collectively referred to here as ‘spouses’) wish to leave the bulk of their estates to each other. The main reason for this is to ensure that after the first death, the survivor can continue to enjoy the same sort of lifestyle they enjoyed together. The survivor usually wants to remain in the couple’s home, at least initially.
The other main reason for one spouse to leave his assets to the other is that there is generally no inheritance tax to pay on his death because of the spouse exemption. Provided that the surviving spouse is UK domiciled or both spouses share the same domicile (whether UK or not), there is no inheritance tax to pay on gifts between spouses, whether during lifetime or on death. Note, however, that the spouse exemption is currently capped at the same level as the prevailing nil rate band (currently £325,000) on gifts by a UK domiciled spouse to a non-domiciled spouse, unless the non-domiciled spouse elects to be treated as UK domiciled for inheritance tax purposes. See the Transfers to a non UK domiciled spouse or civil partner guidance note.
The majority of clients provide for the surviving spouse by leaving the residue of their estates to each other outright. The prop
**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
Statutory references to ITTOIA 2005 relate to unincorporated businesses and CTA 2009 relate to companies unless otherwise stated.Legal and other professional fees can represent substantial costs to a business. A detailed analysis is often required for the purpose of preparing tax computations as
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s
Tax professionals will often be asked to provide input into the financial statement work undertaken by audit professionals. This guidance note is intended to give an overview of some of the key issues when undertaking audit work.This note is an introduction only and is written on the assumption that
In certain circumstances shareholders may wish to pay dividends other than in proportion to their shareholdings. This aim is typically achieved by one or more shareholders not taking a dividend when it is declared. To effect this, the relevant shareholders must waive their right to dividends from