#UK inheritance Tax Planning

[wealthmanagement25]

Securing Your Legacy with Harry Robinson Wealth Management: UK Inheritance Tax Planning in Bristol

Managing wealth effectively involves not just growing it, but also protecting it from significant liabilities like inheritance tax (IHT). In the UK, IHT is a considerable concern for those with estates valued over £325,000, as it is taxed at a high rate of 40%. Effective inheritance tax planning with a reputable firm like Harry Robinson Wealth Management in Bristol can help you minimise this burden and safeguard your assets for the future.

Understanding Inheritance Tax in the UK

Inheritance tax is applied to the estate of a person who has passed away. However, several exemptions and reliefs can reduce or eliminate this tax if managed correctly. Harry Robinson Wealth Management specialises in guiding clients through the complexities of IHT, helping them understand options like the nil-rate band, residence nil-rate band, and various gifting strategies. These allowances can significantly lower the taxable value of an estate, but knowing how to utilise them effectively requires expert advice.

Why Opt for Harry Robinson Wealth Management in Bristol?

Harry Robinson Wealth Management, based in Bristol, is renowned for providing comprehensive inheritance tax planning services tailored to individual needs. The firm’s local expertise and commitment to personalised client care set them apart. They understand that each client's situation is unique, which is why they focus on creating bespoke strategies that align with personal goals, financial aspirations, and family dynamics. Their approach ensures that wealth is preserved and passed on efficiently, avoiding unnecessary tax liabilities.

Effective Inheritance Tax Planning Strategies

Harry Robinson Wealth Management employs several strategies to help clients reduce their inheritance tax burden:

Utilising Exemptions and Reliefs: One of the simplest ways to reduce an estate's taxable value is by making use of various IHT exemptions. For example, the annual gift allowance allows individuals to give away up to £3,000 each year without it being added to the value of their estate. Harry Robinson Wealth Management ensures clients fully understand these allowances and how best to utilise them in their planning.

Trusts and Estate Planning: Setting up trusts can be an effective method to manage and protect assets for future generations while reducing the IHT liability. Trusts allow for greater control over when and how assets are distributed. The team at Harry Robinson Wealth Management helps clients explore different types of trusts, such as discretionary trusts, and determine which option aligns best with their estate planning goals.

Life Insurance Policies: A life insurance policy written in trust can be a valuable tool to cover potential inheritance tax liabilities, ensuring that beneficiaries do not have to sell off assets to cover the tax bill. This approach can be particularly beneficial for those with valuable properties or family businesses. Harry Robinson Wealth Management provides advice on structuring such policies to optimise tax efficiency.

The Role of Discretionary Fund Management

In addition to inheritance tax planning, Harry Robinson Wealth Management also offers discretionary fund management services. This involves expert management of an investment portfolio on behalf of clients, allowing for quick decisions in response to market changes. By combining inheritance tax planning with discretionary fund management, clients can ensure both the growth and protection of their wealth, providing a comprehensive approach to financial security.

[bluebonduk]

If a trust lends money to adult children, the transaction is generally not tax-free. The interest rate charged must be at or above the applicable federal rate (AFR) to avoid imputed income tax implications. If the loan is interest-free or below AFR, the IRS may treat it as a gift, which could trigger gift tax obligations for the lender. Additionally, the loan terms should be properly documented to avoid reclassification as a distribution. Consulting with a tax advisor is recommended to ensure compliance with IRS regulations and to understand potential tax implications for the trust and the borrower

[willsandtrusts]

Learn effective strategies to safeguard your children's inheritance in the UK. Discover how to create a will, establish trusts, use life insurance, and minimise inheritance tax. Ensure your loved ones are protected and your legacy is secure. Contact Wills & Trusts Wealth Management for professional guidance today.

[adlestateplanning]

Inheritance Tax and What You Can Do To Reduce Your Liability

Inheritance tax (IHT) remains a topic that evokes confusion and concern for many individuals planning their estate. The complexities of the UK’s tax system make obtaining inheritance tax advice a crucial task. This blog describes 3 key strategies to effectively reduce any inheritance tax liability, namely:

Strategic Gifting

Contributing to a Pension and,

Optimising for Business Relief (BR) previously known as Business Property Relief (BPR)

To start off, let’s define Inheritance tax. Inheritance tax is a tax on the estate (the property, investments, and possessions) of someone who has passed away. An estate is not taxed on the first £325,000 known as the nil-rate band (NRB), this increases to £650,000 for a married couple or a couple in a civil partnership.

Furthermore, when passing on a home to direct descendants an estate can claim an additional exempt threshold known as the Residential Nil Rate Band (RNRB) which is a further allowance of £175,000 or £350,000 for a married couple. This means an individual can pass down £500,000 free of inheritance tax on their death, or if married, there’d be no inheritance tax to pay on first death if the beneficial interest passed to the surviving spouse, who could then use a total exempt threshold of £1,000,000, which will not be liable inheritance tax.

Anything above these allowances is taxed at a flat rate of 40%. This means most people in the UK will not face an inheritance tax liability. However, for those that do, there may be several options available to reduce this liability, but expert inheritance tax advice is needed. There are lots of moving parts.

Strategic Gifting

Lifetime gifting is a powerful strategy in IHT planning. By gifting assets during your lifetime, you can significantly reduce the value of your estate over time. There are several exemptions and allowances for gifts, including the:

Annual exemption – £3,000 per year

Small gifts exemption – £250 per person

Gifts in consideration of marriage or civil partnership – £5,000 for a child

These exemptions are too small to make a reasonable dent in a sizeable estate. This is where potential exempt transfers (PETs) and chargeable lifetime transfers (CLTs) come into play, both of which form critical components of inheritance tax advice. PETs refer to gifts made by an individual to another individual (not to a trust or a company) during their lifetime. A PET will only be exempt from inheritance tax if the donor lives for at least seven years after making the gift. There is no limit on how large a PET can be. CLTs refer to gifts made by an individual to a trust during their lifetime, which again, will only be exempt from inheritance tax if the donor survives at least seven years. There is no ‘limit’ per se on how large a CLT can be, however, it is common practice to limit CLTs to £325,000 every 7 years as anything above this would attract a lifetime inheritance tax charge of 20%. A further benefit of settling assets into a trust (CLT) vs. directly gifting to an individual (PET) is 3rd party protection. A gift to an individual will be at risk to divorce settlement claims, creditor claims and general financial mismanagement.

A gift to a trust, provided the trustees are managing the trust well, would provide far greater protection as a trust is a separate legal entity where the individual that the donor wants to benefit can be listed as a beneficiary of the trust, and the trust assets can be controlled by experts and only distributed in accordance with the trust deed and letters of wishes.

Pension Contributions

Pensions can be a potent tool in IHT planning, offering opportunities to pass on wealth outside of one’s estate, thus reducing an inheritance tax liability. A pensions’ primary use case is a vehicle to provide capital and income during retirement. However, if an individual can draw on other assets that are part of the estate first, such as cash, ISAs, and general investment accounts, then withdrawals from the pension can be deferred. In some cases, a pension can be left untouched as because it’s surplus to retirement income and capital needs and in such circumstances the pension becomes a great vehicle for passing on a tax-efficient legacy to chosen beneficiaries. Contributions to a pension attracts upfront tax relief and removes the cash invested from the estate immediately, making them an essential consideration in estate and financial planning.

Business Relief

Business Relief (BR) offers up to 100% relief from inheritance tax on business assets. Qualifying for BPR involves meeting specific criteria, such as holding the assets for at least two years, and ensuring the business is carrying out a trading activity. An investment activity is not considered a trading activity, therefore businesses primarily dealing in property letting and trading securities will not qualify for BPR.

If you own a trading business, it’s likely the shares you own will qualify for BR and the value of the shares will be exempt from inheritance tax. However, if there is any surplus cash on the balance sheet there is a risk this will be treated as an excepted asset. That is an asset that, despite being owned by the business, is not considered necessary for the future success of the business’s trading activities. This can impact the amount of BPR that can be claimed.

People approaching retirement typically look to sell their business. This is great from a cash flow point of view, as one can expect a generous windfall to fund their retirement needs. However, one loses the BR status of the shares sold with cash now sitting in their personal name which is liable to inheritance tax. To mitigate this one can explore deploying the proceeds into investments that qualify for BR such as:

Enterprise Investment Schemes (EIS) - Investments into UK start-ups and early-stage firms that attract very generous tax reliefs (including BR). This tends to be an investment into an unlisted company that in turn invests into crucial infrastructure projects. Provided you’re dealing with a mainstream provided these tend to have lower volatility than investing into an AIM IHT portfolio.

AIM IHT portfolios - Investments into AIM listed shares that qualify for BR.

Navigating the complexities of inheritance tax can seem overwhelming, but with the right inheritance tax advice and IHT planning, it’s possible to significantly reduce the tax burden on your estate. Effective estate planning allows you to pass on more of your wealth to your loved ones, highlighting the importance of seeking professional inheritance tax advice to guide you through the process. Whether it’s making strategic gifts, contributing to a pension scheme, or optimising for business property relief, each strategy offers a pathway to minimising inheritance tax and ensuring more of your estate passes to your children rather than the taxman.

Originally posted by - https://adlestateplanning.co.uk/inheritance-tax-and-what-you-can-do-to-reduce-your-liability/

[inheritancetax4]

Inheritance Tax Threshold in UK | Inheritance-tax.co.uk

One of the most important aspects of estate planning is figuring out what the inheritance tax threshold is in the UK. This is a tax that is charged on money and assets that belong to a person and are passed on after they die. Understanding the inheritance tax to pay and IHT thresholds can help you manage your finances and plan for the future, both of which are essential steps in estate planning.

For More Information Visit Us: https://inheritance-tax.co.uk/area/inheritance-tax-threshold/

[inheritance-tax]

Get the Best Inheritance Planning in UK

Ensure your legacy is protected with expert inheritance planning in the UK. Our tailored strategies will help minimize inheritance tax and maximize the value of your assets for your loved ones. Visit us now to secure your family's future.

[houseofbrat]

12 JULY 2024: William plays polo at a charity match. Kate and the children do not attend.

William confirms he will attend the Euro final on Sunday, 14 July 2024.

13 JULY 2024: Kate confirms she will attend the men's final at Wimbledon.

14 JULY 2024: Kate attends the Wimbledon men's final with Charlotte and Pippa.

William attends the Euro final with George to watch England lose to Spain.

15 JULY 2024: Katie Nicholl, Vanity Fair, "Kate Middleton Is Now “On Summer Break” After Wimbledon Appearance" [archive link]

Kate Middleton’s appearance at Wimbledon on Sunday delighted tennis and royal fans, but it may be some time before we see Kate in public again. According to royal sources, Prince William and Princess Kate are planning to spend most of the summer “below the radar” at their Norfolk bolthole now that Prince George, Princess Charlotte and Prince Louis are out of school and Kate continues her course of preventative chemotherapy. While Kensington Palace would not give details on the family’s plans for the summer, a royal source confirmed that the Wales family are now “on summer break.” Sources close to the family say that although they will not be traveling abroad this summer while Kate undergoes treatment, they are excited to visit King Charles and Queen Camilla in Scotland next month. Sunday’s appearance at Wimbledon is likely to be Kate’s last official engagement until later this year.

16 JULY 2024: Will & Kate are looking to hire a new Assistant Private Secretary that can speak "conversational Welsh." [archive link]

Although the new hire would be responsible for Prince William and Catherine's public engagements in Wales, Scotland and Northern Ireland, the future King and Queen want their new Assistant Private Secretary to specifically focus on Wales and believe it is "essential" that they speak conversational Welsh. [...] Almost two years after taking on their Wales titles, and after a testing year so far with The Princess' major abdominal surgery and cancer diagnosis, it appears Prince William and Catherine are driving forward with their plans, seeking "specific expertise on Welsh communities, affairs, government, and business". Handled by the largest executive search firm in the United Kingdom, Odgers Berndtson has posted a job advert for an Assistant Private Secretary ("APS"), Wales & UK on behalf of Kensington Palace.

18 JULY 2024: The attempted Donald Trump assassin had searched for images of Kate according to investigation.

23 JULY 2024: William announces more patronages. Kate does not announce any new patronages.

24 JULY 2024: Victoria Ward, The Telegraph, "Prince William refuses to reveal how much tax he pays." [archive link]

The Prince of Wales has chosen not to reveal how much tax he pays on the private income he receives from his vast property portfolio, marking a notable change in approach from when his father was heir to the throne. Prince William’s Duchy of Cornwall estate, the billion-pound business empire he inherited on the death of his grandmother, Elizabeth II, generated profits of £23.6 million in the last financial year. He is understood to pay income tax on the full amount, less household costs, which have also not been disclosed.

26 JULY 2024: Robert Jobson's book excerpt in The Daily Mail, "How the Queen and Charles clashed with William after he refused to stop flying his young family around Britain in his helicopter." [archive link]

One courtier explained: 'The King's relationship with both his sons has been difficult over the years. Even now he is King, with the Prince of Wales, there can be differences of opinion and tensions. Of course, they love each other, but they clash, and sometimes William needs handling with kid gloves.' Another courtier confirmed: 'You have to check first which way the wind is blowing with the prince. They don't see eye to eye on several issues, but why should they? [Prince William's] moment in the top job will come — perhaps he would do well to remember it is not yet. This is His Majesty's time.' When he loses his temper, William is a bit of a shouter — and his father tends to give as good as he gets. The difference these days is that their arguments usually blow over quite quickly. One recent source of disagreement is William's stubborn refusal to take his father's advice on safeguarding the succession. Earlier this year, the King had raised concerns with his son about the wisdom of William using his helicopter to fly his entire family around the country.

27 JULY 2024: People magazine (US), "Prince William and King Charles Clashed Over Use of Helicopter for Kate Middleton and Their Children, New Book Claims". [archive link]

According to Robert Jobson's soon-to-be-released biography, Catherine, The Princess of Wales, the King, 75, “raised concerns” with William, 42, over his helicopter use with Kate Middleton and their children, Prince George, Princess Charlotte and Prince Louis, that sparked a tense disagreement between the pair.  In an excerpt from Jobson’s book, per The Daily Mail, King Charles brought up his worries on the matter after coming to terms with his mortality following his cancer diagnosis, which was announced in February. The King even presented experienced pilot William with “a formal document acknowledging the risks involved and taking full responsibility for his actions” amid their dispute, the new book claims.   Charles’ concerns echoed that of his late mother Queen Elizabeth, who previously requested William not fly with his family on a helicopter from Kensington Palace to his former residence of Anmer Hall in Norfolk, which is a 115-mile journey, according to Robson.  [...] It is also understood that the palace has fully evaluated the risk of the family flying together, compared with implementing a policy where separate travel assets are provided for one or more members of The Prince and Princess of Wales’ family.

30 JULY 2024: The Prince's Trust announces the date for its annual Christmas Carol concert, 09 December 2024.

Hilary Rose, The Times, posts an article about William van Cutsem, friend of Prince William and recently appointed as an adviser to the Duchy of Cornwall. [archive link]

The Earthshot Prize tweets about their third annual Earthshot Prize Innovation Summit, which mentions no commitment by William to attend.

03 AUGUST 2024: Daily Mail's Natasha Livingstone

07 AUGUST 2024: Tom Sykes, The Daily Beast, "Princess Kate Will Focus on Her Kids After ‘Brush With Mortality’: Sources" [archive link]

It is thought the smaller Wales family are unlikely to travel this year to Tresco, a small island off the coast of Cornwall, where they have often spent summer holidays. However, The Daily Beast has been told that the couple are aiming to be in Balmoral either for the opening of the grouse-shooting season on Aug. 12 or shortly thereafter. William and Kate both shoot. One friend of the couple told The Daily Beast: “Kate has been exceptionally open and honest about her health. Making two appearances before the summer break, at Wimbledon and Trooping the Colour, was a clear signal that she is doing well. That is what we are hearing privately as well—it’s not over but there is lots of optimism, lots of positivity.” [...] Another source, a Buckingham Palace insider, said they understood there was no sense that Kate was expected to be back on duty for the traditionally busy period of royal engagements that kicks off in the first week of September and runs through to Christmas.

11 AUGUST 2024: William & Kate appear for less than ten seconds in a video message for Team GB with multiple celebrity appearances, after the end of the Olympics.

13 AUGUST 2024: Lucie Heath writes about the Duchy of Cornwall.

The Duchy of Cornwall’s largest single landholding is 27,300 hectares on Dartmoor, which accounts for approximately one third of the National Park. Last year the Government published an independent review of Dartmoor, which concluded the landscape was “not in a good state”. Dr Alexander Lees, a biodiversity expert at Manchester Metropolitan University, said the Duchy of Cornwall has a big part to play in turning things around at Dartmoor and other sites it owns. “As one of Britain’s biggest landowners, the Duchy of Cornwall is in a position of strength to combat the entwined biodiversity and climate crises. However, massive additional investment in conservation is needed across these landholdings,” he said. Dr Lee said: “clearly there is a need to generate income to leverage restoration and rewilding across the estate”, but added it is “questionable” that some of this income comes from a car dealership when the Duchy has promoted reduced car use through its flagship Poundbury housing estate in Dorset.

14 AUGUST 2024: Rebecca English, Daily Mail, "Why Kate's year has been tougher than anyone realises - and why she's starting to glow again." [archive link]

What most will not appreciate is that Catherine had actually been unwell for some time in the run up to her initial abdominal surgery in January (further details of which have not been made public yet by Kensington Palace). It was only after that ‘planned’ operation, of course, which left her in hospital for two weeks, that her cancer was discovered.

The Daily Beast rehashes the "exclusives" from the Daily Mail.

16 AUGUST 2024: Dan Wootton reiterates that Kate may "NEVER" return to full-time royal duties.

Tusk Trust CEO says William wants to introduce his children to Africa.

"He is very knowledgeable and passionate about conservation and the environment,” Mayhew said. “He has a particular love for Africa. He has been incredibly supportive as our patron and proactive in supporting us. We find ourselves incredibly lucky.” Mayhew plans to meet up with Prince William in Cape Town, South Africa, when the Prince of Wales hosts the fourth annual Earthshot Prize Awards there in November. Soon enough, the Prince of Wales will want to introduce his three children — Prince George, Princess Charlotte and Prince Louis — to the continent, Mayhew said. “I think it won’t be long before, you know, he will want to introduce them to Africa,” he said.

17 AUGUST 2024: Natasha Anderson, Daily Mail, reports on how Will, Kate, George, Charlotte, and Louis, spent the day at a large Nerf battle. [archive link]

The Royal family had a bit of a rumble last weekend as the Prince and Princess of Wales faced off against their children in a Nerf battle. Prince George, 11, Princes Charlotte, nine, and six-year-old Prince Louis joined in the festivities at the Gone Wild Festival at Holkham Hall, Norfolk for a high-intensity Nerf war with toy guns and smoke bombs. Excitable and 'unforgettable' Louis ran around yelling 'Nerf or nothing, let's do this!', according to Norfolk Nerf Parties boss Georgina Barron. The Princess of Wales, who has been battling cancer, even 'grabbed a Nerf gun, ran around, and played stuck in the mud with her kids', Ms Barron added, noting that hosting the family was the 'biggest honour' and 'unforgettable'. Ms Barron said the royals, who were not photographed at the event, had wanted to enjoy a 'wholesome family day like any other normal family'. Kensington Palace has been approached for comment. 

19 AUGUST 2024: People magazine (US), story about who's who in the Middleton family.

The Mirror, "Kate Middleton's 'tough' side and unlikely inspiration for 'ambitious' plans" [archive link]

The Princess of Wales has rapidly ascended the Royal ranks, becoming a favourite among the Royal Family due to her sense of humour and evident respect for her role. Even during her cancer treatment, she has displayed nothing but strength and determination. Kate, once shy and reserved, has transformed into a confident, playful, and occasionally assertive figure, commanding as much public respect as King Charles or Prince William could ever wish for. This trust that the King places in his "darling daughter-in-law" reportedly leads to her frequently being asked for her opinion due to her relatability.

20 AUGUST 2024: "Princess Charlotte, Lady Louise and the Duchess of Edinburgh go on special trip" [archive link]

Princess Charlotte, Lady Louise and Sophie, the Duchess of Edinburgh went on a special shopping trip in London, according to a source. Charlotte has a good relationship with her great-aunt and the two royals were joined by Sophie's daughter Louise during a trip to Chelsea. The royals headed to the Peter Jones store on King's Road which is said to be one of Charlotte's favourite stores. A source told The Sun: "There is a really warm connection between Sophie and her great-niece, which is very touching."

21 AUGUST 2024: Tom Sykes, The Daily Beast, "Princes William and Harry May Only Reunite at King Charles’ Funeral: Source" [archive link]

Asked about the reports that Harry would not be invited to William’s coronation, the source said: “I believe it 100 percent. Why would William and Kate want all the distraction and circus that his presence would bring? I suspect that William will see Harry one more time in his life in the flesh—at their father’s funeral.” A former Buckingham Palace staffer told The Daily Beast: “Planning for William’s coronation is well underway, and as I understand it there are no plans to invite Harry. It’s hardly surprising when you look at how poisoned the well has become.”

US Weekly (USA) has cover story on William & Camilla, with sourcing from Christopher Andersen's book.

23 AUGUST 2024: People magazine (US), "Prince William's Return to Work Plans Revealed After Summer Break with Kate Middleton and Their Kids" [archive link]

On Aug. 22, Kensington Palace announced that the Prince of Wales, 42, will visit the Homelessness: Reframed exhibit at the Saatchi Gallery in London on Sept. 5. The display highlights the complexities of homelessness across the U.K. and offers the public an opportunity to better understand the stories of individuals who have been affected. Homelessness: Reframed is a collaboration between Prince William's Homewards program, which he launched with the Royal Foundation in June 2023 to help end homelessness for good, the Saatchi Gallery and the Eleven Eleven Foundation. The presentation opened on Aug. 7, and Prince William will visit before it closes on Sept. 20.

25 AUGUST 2024: Kate seen in a car on the way to church 'at Crathie Kirk, Balmoral, Scotland.

Daily Mail, "Inside Kate's slow and steady return to public life: How the Princess of Wales has won over the nation's hearts with appearances at Trooping the Colour, Wimbledon and Crathie Kirk following cancer diagnosis" [archive link]

Her appearance had been in doubt after she missed the final Trooping rehearsal the weekend prior to the celebration, with confirmation that she would attend only given at 6pm the evening before.  [...] And now, Kate has been seen in public for the third time since revealing that she has cancer - just two weeks after her video message praising Team GB.  The royal appeared in high spirits as she was pictured arriving for Sunday service with her husband William at Crathie Kirk today.  William drove the car, smiling as he chatted with his wife and opting for a navy blue suit for the occasion.  The Princess sported the same hat she donned last year for a Sunday church service, when she donned a beige tartan Marlborough trench coat from Holland Cooper with  dark brown wool felt fedora with feathers.

28 AUGUST 2024: The Daily Mail's royal editor, Rebecca English, confirms that William "never planned to" attend the Earthshot Prize Innovation Summit in September 2024.

29 AUGUST 2024: Matt Wilkinson, The Sun, reports that both William and Harry attended their uncle's funeral in Norfolk, "Warring Prince William and Harry REUNITE at their uncle’s funeral after Duke of Sussex makes secret dash to UK" [archive link]

The Duke of Sussex, 39, flew from his US home to join his brother, 42, at the service for Lord Robert Fellowes. A local in Snettisham, Norfolk, said: “We never saw them speak to each other and they kept their distance.” The princes both “discreetly” attended the funeral for Lord Fellowes — who was their mother Diana’s brother-in-law. They were said to have kept their distance from each other and sat at the back of the church. Sources close to US-based Harry had previously claimed he would not attend. But a close family friend said they were “very happy to confirm both princes were there”. Another source told how they only saw them at the end of the service at St Mary’s Church. They said: “I didn’t know they were there. They arrived very discreetly.” One local said: “William and Harry were both there but we never saw them speak to each other and they were keeping their distance.”

TIMELINE:

Part 1

Part 2

Part 3

Part 4

[capitalism-is-parasitism]

George Monbiot: TAX THE RICH, TAX THEM HARD (Labour is already failing)

We need a genuine levelling up, across regions and across classes. The austerity inflicted on us by the Conservatives was unnecessary and self-defeating and Labour has no good reason to sustain it.

The new government insists it is ending austerity. It isn’t. As the Institute for Fiscal Studies (IFS) pointed out in June, Labour’s plans mean that public services are “likely to be seriously squeezed, facing real-terms cuts”. Similarly, the Resolution Foundation has warned that, with current spending projections, the government will need to make £19bn of annual cuts by 2028-29. However you dress it up, this is austerity.

We are constantly told: “There’s no money.” But there is plenty of money. It’s just not in the hands of the government. The wealth of billionaires in the UK has risen by 1,000% since 1990. The richest 1% possess more wealth than the poorest 70%. Why do they have so much? Because the state does not; they have not been sufficiently taxed.

There are two reasons for taxing the rich and taxing them hard. The first is to generate revenue: this is the one everyone thinks about. But the second is even more important: to break the spiral of patrimonial wealth accumulation. Unless you stop the very rich from becoming even richer, it’s not just their economic power that continues to rise, but also their political power. Democracy gives way to oligarchy, and oligarchy is intensely hostile to everything Labour governments seek to achieve, including robust public services and a strong economic safety net. When oligarchs dominate, you can kiss goodbye any notion of the public good.

Last year, I tried to estimate how much it would cost to restore a viable, safe and inclusive public realm after 14 years of Tory vandalism. While my effort was very rough, the sum came to between £65bn and £100bn of extra spending a year: between seven and 10 times more than Labour’s total. It’s a lot, although it’s dwarfed by the money the previous government spent on the pandemic: between £310bn and £410bn over two years.

While these sums are ambitious, and would require expanded borrowing (which Labour has foolishly ruled out) as well as taxation, there are plenty of opportunities to raise taxes on the rich. The government could, for example, replace inheritance tax with a lifetime gifts tax kicking in at £150,000, a level that would affect only wealthy people. This would increase revenue while ending a major form of tax avoidance. The government should raise capital gains taxes: it’s perverse that unearned income is taxed at a lower rate than earned income. It should close the carried-interest loophole, which ensures that private equity bosses pay less tax than their cleaners: a pledge on which it already seems to be backtracking.

The government could also levy a wealth tax, a luxury goods tax and a tax on second homes and holiday homes. It could make the windfall tax on fossil fuel revenues permanent. It could replace business rates with land value taxation, and council tax with a progressive property tax based on contemporary property values: both shifts would be fairer and would raise more money. But the only extra taxes the government propose are, as the IFS remarks, “trivial”.

By seeking to raise revenue through economic growth rather than redistribution, Labour avoids the necessary confrontation with economic power. Not only is the strategy uncertain of success (economic growth here is subject to global forces); not only does growth load even more pressure on the living planet; but this approach also fails to break the grip of the ultra-rich. Isn’t this the whole damn point of a change of government, after 14 years of Tory appeasement? Unless you seek to change the structures of power and redistribute wealth, the rich will continue to harvest the lion’s share of growth while using some of their money to buy the politics that expands and fortifies their dominion.

[masllp]

Tax advisory services in UK

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I hope this gives you a good starting point for your blog! Tax advisory services in UK | Tax advisory services

[mostlysignssomeportents]

This day in history

#20yrsago Why I hate curly-quotes https://memex.craphound.com/2003/02/20/why-i-hate-curly-quotes/

#15yrsago Toronto’s Queen Street West burns https://torontoist.com/2008/02/massive_fire_hi/

#15yrsago Email apnea: holding your breath while you answer mail https://radar.oreilly.com/archives/2008/02/diagnosis-email-apnea.html

#15yrsago Swedish couple fined for naming their child “Brfxxccxxmnpcccclll mmnprxvclmnckssqlbb11116” https://web.archive.org/web/20080303035555/clipmarks.com/clipmark/5339E6C3-4599-4A13-83EF-9B86390BD756/

#15yrsago Great financial advice for writers https://whatever.scalzi.com/2008/02/11/unasked-for-advice-to-writers-about-money/

#10yrsago Anti-capitalist London graffiti mysteriously removed, offered for sale in Miami for $500,000 https://www.wired.com/2013/02/banksy-work-auction/

#10yrsago What it feels like to submit a manuscript https://dreamcafe.com/2013/02/19/an-open-letter-to-my-editor/

#10yrsago I Can’t Let You Do That, Dave: when we design computers to boss us around https://www.publishersweekly.com/pw/by-topic/columns-and-blogs/cory-doctorow/article/56013-i-can-t-let-you-do-that-dave.html

#10yrsago Vehicular tetris plan foiled by German policeman with tragic lack of imagination https://www.bild.de/regional/duesseldorf/lkw/hochstapler-laster-von-polizei-gestoppt-28550542.bild.html

#5yrsago Since 1998, using your own property has required regulatory permission and the ability to make your own jailbreaking tools from scratch https://www.eff.org/deeplinks/2018/02/did-congress-really-expect-us-whittle-our-own-personal-jailbreaking-tools

#5yrsago The Internet Archive’s Military Industrial Powerpoint Complex: eyeball-lancing collection of terrible US military slides https://archive.org/details/MilitaryIndustrialPowerpointComplex

#5yrsago California ballot initiative to make state university free again by reinstating inheritance tax for millionaires https://web.archive.org/web/20180220201634/https://www.thenation.com/article/a-serious-push-for-free-college-in-california/

#5yrsago Students substitute gun control protest for active shooter drill https://wdea.am/mdihs-postpones-lockdown-drill-students-silently-protest-this-morning/

#5yrsago Corbyn says he’ll end asset-stripping hostile takeovers https://www.theguardian.com/politics/2018/feb/20/we-will-prevent-hostile-takeover-bids-for-uk-firms-jeremy-corbyn

[iwcprobateservicesuk]

Trust and Estate Planning Services in the UK – Get Precise Solutions from IWC

Planning for the future is an essential part of life, especially when it comes to securing your assets and ensuring they are passed on to the right people. At IWC, a team of experts has been working to offer tailored trust and estate planning services to help you navigate these crucial decisions with confidence. Trust and estate planning is more than just writing a will; it ensures that your financial affairs are organised, your assets are protected, and your loved ones are provided for. Setting up a trust can offer tax advantages, protect wealth from potential creditors, and provide clear guidance on how and when beneficiaries receive their inheritance.

IWC understands that every individual’s circumstances are unique. The experienced team works closely with clients to offer precise and bespoke solutions that align with their personal goals. Whether it’s drafting wills, setting up family trusts, or managing probate matters, they provide comprehensive services that simplify the process and ensure your assets are protected for future generations.

The trust and estate planning services are designed to remove the complexity from the process, offering peace of mind for both you and your family. With IWC’s expert guidance, you can be confident that your wealth is managed and distributed in line with your wishes.

Contact IWC today to discuss your trust and estate planning needs and secure a solution that works for you.

[bluebonduk]

An IPDI Trust is created upon death and qualifies as an interest in possession trust. Established by a will or under intestacy laws, the life tenant has an immediate right to income from the trust's assets or can use the assets, like living in a residence. The entitlement may last for the beneficiary's lifetime or for a fixed term, ending under specific conditions like death or remarriage.

[willsandtrusts]

Discover the crucial benefits of estate planning for young families, including guardianship for children, financial security, and tax minimisation. Ensure your family's future is protected with a comprehensive estate plan. Contact Wills & Trusts Wealth Management for tailored guidance.

[adlestateplanning]

Why Inheritance Tax Planning is Crucial for Your Financial Future in the UK

Inheritance tax planning is not merely a consideration but a necessity for anyone looking to manage their estate effectively. The concept of inheritance tax (IHT) centres around the tax your estate owes upon your death, if the value exceeds certain thresholds set by the government. Understanding the basics of inheritance tax and its implications is crucial, as it directly impacts the legacy you leave behind for your loved ones.

The mechanics of inheritance tax involve several key elements, including thresholds, rates, and available reliefs. Currently, the IHT threshold, also known as the nil-rate band, stands at £325,000 for individuals. This means that estates valued below this figure are exempt from inheritance tax. For estates exceeding this value, the standard IHT rate applied is 40%. However, strategic inheritance tax planning can significantly reduce this liability, leveraging various reliefs such as the spousal exemption and business property relief (BPR). As well as strategic gifting to individuals or trusts during lifetime.

Inheritance tax can affect various types of assets within an estate, from real estate and investments to personal chattels. Real estate, often the most valuable asset individuals own, can significantly increase the overall value of an estate, potentially leading to a sizable inheritance tax bill. Similarly, investments and businesses that do not qualify for BPR (such as companies that own residential property) are also assessable for IHT purposes. Understanding the impact of inheritance tax on these assets is pivotal in inheritance tax & estate planning advice, ensuring beneficiaries receive the maximum possible from their inheritance.

Effective inheritance tax planning involves maximizing your available allowances to minimise the IHT liability. The nil-rate band offers an opportunity to pass on assets up to £325,000 tax-free. For married couples and civil partners, this allowance can be transferred, effectively doubling the nil-rate band to £650,000. Moreover, the residence nil-rate band (RNRB) provides an additional allowance of £175,000 for individuals, and £350,000 for married couples, when passing on a family home to direct descendants. However, the RNRB is tapered down by £1 for every £2 the estate value exceeds £2,000,000, underlining the importance of thorough planning and understanding of these allowances in inheritance tax planning.

For property owners, inheritance tax planning encompasses several innovative strategies to mitigate tax liabilities. A Holdover Gift Trust can offer a structured way to manage and pass on equity in property efficiently, potentially reducing the inheritance tax burden and deferring any capital gains tax liability. Rental income is given up using this strategy though, so section 102 (b)(iii) planning may be a more suitable option if rental income is still required. If an individual, or couple, own a significant amount in property, then structuring the property in a clever alphabet share class company would offer the ideal solution to optimise against inheritance tax. There are several options available to property owners, however, it is critical to seek inheritance tax & estate planning advice as there are different tax implications for each solution that needs to be considered carefully.

At the heart of inheritance tax planning is the creation of a Will, a fundamental document that dictates the distribution of your estate according to your wishes. Without a Will, your estate is subject to the rules of intestacy, which may not align with your intentions. Additionally, Immediate Post-Death Interest (IPDI) trusts represent a sophisticated planning tool, allowing for greater control over how and when assets are distributed, providing a tax-efficient way to manage inheritance.

In conclusion, inheritance tax planning is an indispensable element of financial and estate management. It ensures your assets are passed on to your beneficiaries in the most tax-efficient manner possible. By understanding the nuances of inheritance tax, from thresholds and rates to the impact on different assets, individuals can craft a strategy that aligns with their goals. Maximising allowances, utilising reliefs, strategic gifting, and ensuring the proper legal foundations are in place via a Will and IPDI trusts are all critical steps in safeguarding your estate for future generations. With the right inheritance tax & estate planning advice, you can secure your financial legacy and provide for your loved ones long after you’re gone.

Originally posted by - https://adlestateplanning.co.uk/

[bukmarkmedia]

The Importance of Tax Planning Services in the UK

Effective tax planning is crucial for both individuals and businesses looking to optimize their financial standing and ensure compliance with tax laws. In the UK, tax planning services help clients make informed decisions, structure their finances efficiently, and take advantage of legal tax reliefs and allowances. In this blog, we’ll explore the benefits of tax planning services, how they work, and why they are essential for long-term financial success.

What is Tax Planning?

Tax planning is the process of arranging your financial affairs in such a way that you minimize your tax liability legally. It involves understanding the tax system, allowances, and reliefs available to you and applying them strategically to reduce the amount of tax you owe. This is not tax evasion or avoidance, but rather a proactive approach to managing your finances efficiently within the legal framework.

Tax planning covers various areas, including:

Income tax

Corporation tax

Capital gains tax

Inheritance tax

VAT (Value Added Tax)

Why Do You Need Tax Planning Services?

Navigating the complexities of UK tax laws can be daunting, especially with frequent changes and updates. Professional tax planning services ensure that you not only comply with these regulations but also make the most of opportunities to reduce your tax burden. Below are some key reasons why tax planning services are beneficial:

Maximize Tax Efficiency: Tax planning services help you take full advantage of available reliefs, allowances, and deductions. This could include utilizing tax-efficient investments like ISAs (Individual Savings Accounts), pensions, or business-related deductions for entrepreneurs and companies.

Mitigate Tax Risks: UK tax regulations are detailed and complex. By using tax planning services, you reduce the risk of making costly mistakes that could lead to fines or audits. Professional advisers help ensure that your tax affairs are in order and compliant with HMRC rules.

Save Time and Stress: Preparing tax returns and managing tax obligations can be time-consuming, especially if you have multiple sources of income or complex financial affairs. A tax planning service takes the burden off your shoulders, allowing you to focus on other aspects of your life or business.

Planning for Future Life Events: Major life changes, such as selling a business, buying property, or retirement, have significant tax implications. Tax planning services help you prepare for these events by structuring your finances in the most tax-efficient way.

Business Growth: For businesses, tax planning can support expansion by identifying ways to invest profits tax-efficiently, access R&D (Research & Development) tax credits, and structure employee benefits. This leads to increased cash flow and improved financial health.

Types of Tax Planning Services

Tax planning services vary depending on individual needs or business requirements. Here are some of the common areas covered:

1. Personal Tax Planning

Personal tax planning is designed to reduce the tax liability on individual earnings, investments, and assets. This includes:

Income tax reliefs and allowances (e.g., personal savings allowance, dividend allowance)

Maximising pension contributions for tax benefits

Capital Gains Tax (CGT) planning for investments or property sales

Inheritance tax planning, including the use of trusts and gifting strategies

2. Corporate Tax Planning

Corporate tax planning helps businesses optimise their tax structures. Services include:

Minimising corporation tax through allowances and deductions

Efficient use of VAT schemes and exemptions

Managing business expenses and employee benefits tax-efficiently

Identifying and applying for reliefs like R&D tax credits

3. Capital Gains Tax Planning

Capital Gains Tax is applied when you sell an asset, such as property or investments, at a profit. Tax planning services help reduce this liability by making use of allowances, utilising exemptions like the annual exempt amount, or strategically timing the sale of assets.

4. Inheritance Tax Planning

Inheritance tax can significantly reduce the value of the assets passed on to your heirs. Planning ahead can mitigate this impact. A professional tax planner can help reduce inheritance tax liability through gifting, establishing trusts, or optimising the use of allowances.

How to Choose the Right Tax Planning Service

Selecting the right tax planning service depends on your unique circumstances, whether personal or business-related. Here are some tips to consider:

Expertise: Look for advisors who specialize in your area of need. For example, if you're a business owner, you may want someone with experience in corporate tax planning and VAT.

Accreditations: Ensure that the tax advisors are qualified and accredited by professional bodies such as the Chartered Institute of Taxation (CIOT) or the Association of Taxation Technicians (ATT).

Bespoke Services: Choose a service that offers tailored tax advice based on your individual circumstances, rather than a one-size-fits-all approach.

Proactive Approach: A good tax planner will not just help you file your taxes but will also provide proactive advice throughout the year to help you stay tax-efficient.

Conclusion

Tax planning is a vital part of managing your finances and growing your wealth, whether you’re an individual or a business. By using professional tax planning services, you can minimize your tax liability, ensure compliance with UK tax laws, and take control of your financial future. Whether you’re looking to manage your personal investments, prepare for retirement, or optimize your business’s tax efficiency, investing in expert tax advice will pay off in the long run.