Murray Beith Murray LLP is a leading Scottish private client law firm.
For 175 years we have specialised in meeting the legal, financial and administrative needs of individuals and families, family trusts, charities and private companies.
Arts Council England recently announced that three artworks by Peter Lanyon, a figurehead of post-war British painting, were acquired for the nation as part of the acceptance in lieu scheme, nearly settling the £900,000 Inheritance Tax due on Lanyon’s widow’s estate. Acceptance in lieu is rarely used and may not necessarily spring to mind when planning to pay Inheritance Tax, however, as this case shows it may be worth considering.
The Office of Tax Simplification (OTS) published its second report earlier this month which provides recommendations to the Treasury on the simplification of Inheritance Tax (IHT). Although the remit of the report was to simplify existing policy, rather than to propose different policy, the recommendations would lead to a significant change in existing tax planning strategies. The report highlights that the inconsistencies and complexity of the existing rules lead to a difference in tax paid between individuals who seek specialist advice and the large number of people who do not seek advice. The OTS anticipates that this difference would be narrowed if the recommendations were implemented.
From 6 April 2019 the UK Capital Gains Tax regime for non UK residents has being extended to include the disposal of all UK real estate property (residential and non-residential) as well as on the sale of shares of companies whose assets are “property rich” deriving at least 75% of their value from UK property.
From 6 April 2017, the ability to deduct mortgage interest from rental income is being phased out gradually until April 2020, when after that date, only tax relief will be allowable as an adjustment to a Landlord’s tax liability.
With less than a month until the end of the 2018/19 tax year the annual rush of frantic tax planning is well underway for many individuals. One of the lesser known, but highly advantageous, tax reliefs available to individual taxpayers comes in the form of Share Aid.
