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.
The end of the current tax year will see the phasing out period finalised in respect of relief for mortgage interest on rental profits.
Significant changes and modifications to tax relief come into force from 6 April 2020, which will impact those who hold property as an investment. With just over a week until the UK Budget on Wednesday 11th March, and just over a month until the end of the 2019/20 tax year, it is important for property investors to review their affairs and explore possible tax planning opportunities ahead of this date.
With the Inheritance Tax (IHT) nil rate band having remained at £325,000 since 2009, more people than ever are having IHT charged on their estates on their death. Over £5.37 billion of IHT was paid to HMRC in the last tax year. This is almost double the amount that was collected ten years ago. With careful planning, it may be possible to reduce your future potential IHT liability significantly. Here are our five top tips for reducing your liability:
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.
