#inheritance tax uk

[eaglesnick]

“The Nation that destroys its soil destroys itself” – Franklin D Rooevelt

Last week I heard an inheritance tax bemoaning farmer claiming he was a “custodian" of the countryside as if that claim alone should exempt him from tax. But he is not the only one making this claim:

Sue Pritchard, Chief Executive of the Food, Farming and Countryside Commission said she sees:

“... farmers both as custodians of the countryside as well as food producers, putting nature-based farming at the heart of our future agricultural policy..."  (ffcc.co.uk: ‘Farmers are custodians of the countryside' 30/11/20)

The Farmers Union also claims British farmers are “custodians of the iconic British landscape." (NFU General Election Manifesto 2024) and accused the Labour government of “betrayal" with regard to the changes in inheritance tax.

The dictionary definition of “custodian" is:

 "A person who has responsibility for protecting or taking care of something or keeping something in good condition".

Lets examine how well British farmers have protected and taken care of Britain’s iconic landscape and the wildlife that lives within it.

Since the 1970’s 41% of all UK wildlife species have declined – mammals, amphibians, birds, reptiles, and insects. One of the main reasons for this is the intensification of agricultural methods.

“More than 50 conservation groups say the "policy-driven" intensification of farming is a significant driver of nature loss in the UK. The State of Nature report assessed 8,000 UK species and found that one in 10 are threatened with extinction."  (BBC News: 14/09/2016)

Needless to say farm leaders disputed the findings. Yet a team of ornithologists, zoologists, biologists and ecologists reported that the chief cause of declining bird populations in the UK was due to the use of pesticides and herbicides by farmers. Runoff from farms, including fertilizers and animal waste pollute waterways and soil, affecting the health  of ecosystems and the wildlife that depend upon them. Grubbing up hedgerows and cutting down woodland has led y to a loss of habitat for many of our native mammals and other species.

Not content with killing off Britain’s wildlife, many farmers are also threatening the health of British consumers, in particular the long-term wellbeing of our children.

The use of pesticides which contain “forever chemicals” are a direst threat to public health. PFA chemicals, which take centuries to break down in the environment, were found in 3300 samples tested by the UK government in 2022.

Farmers do not have to use these chemicals. They choose to do so because it increases output and therefore their profits.

“Common UK fruits, vegetables and spices have been found to be contaminated with long-lasting toxins known as "forever chemicals", prompting alarm over potential impacts on public health ...”  (itvX: 09/04/24)

“Profit before people” would seem to be the farmers' motto!

Rather than being “custodians” of the iconic British landscape farmers have traditionally been one of its worst enemies, bent on its destruction if it affords them a few more pennies in the bank.

In 1950, a Forestry Commission assessment concluded that we had 1 million km of hedgerow. By 2007, this reduced to 477,000km, a loss of approximately 52%. This loss of habitat for wildlife was the direct result of farmers deliberately removing hedgerows because by so doing they made more money.

Kemi Badenoch, objecting to rich farmers now having to pay inheritance tax (albeit only 50% of what everyone else has to pay) said:

 “This policy is  cruel, it is unfair and it is going to destroy farming as we know it”

I would suggest that “farming as we know it” isn’t fit for purpose.

“A study found that that UK is one of the world's most nature-depleted countries, with on average about half its biodiversity left - far below the global average of 75%. It means the UK is in the bottom 10% globally for biodiversity.”  (CBBC: 11/10/21)

This isn’t custodianship, this is environmental vandalism on an industrial scale. The destruction of habitat, the use of pesticides and herbicides, the culling of foxes, rabbits and badgers, the eradication of meadows. wetlands and grassland, have all contributed to the  catastrophic loss of biodiversity In Britain, and all in the pursuit of farmers making greater profits.

[disabled-dragoon]

The government are going to scrape people's bank statements every month in order to take their benefits away but god forbid the rich are expected to pay their taxes👍 [thumbs up emoji]

[spoczkotszcz]

The UK is about to become more spicy

Anyone who has been UK resident for at least 10 years will be within the scope of inheritance tax on their worldwide assets

Basically our inheritance tax is going up in percentage and scope big time so the rich are legging it abroad to avoid it

I'm not saying it's right or anything or that it shouldn't go up, but the economy is in large part propped up by shady shenanigans (read up on city of London (yes city not London they're different lol) financial laws)

Something insane like 80 to 90 percent of the gdp is from service sector esp. financial sector services

All I'm saying is I'm physically seeing people pack their bags and go. Big old homes in big expensive areas. I think the shady people are looking for new shades to hide under and fleeing the sunlight of inheritance tax.

And when your whole economy is based on shady worms you will be revealed to be a half eaten apple core when they all leave.

Fun times.

[feckcops]

Britain’s great tax con

“Labour will soon face an inescapable choice. In order to spend money in government, the party will need to raise it. There is a very good way to do that. It is to shift the tax burden away from labour and on to capital, away from work and on to wealth ...

“Starmer and Reeves are following an electoral script written for a different era. Britain has been transformed since Labour won in 1997. One part of the country has lived through an asset boom. The other is living on wages that have not risen in real terms for 15 years, since before the 2008 financial crash. For those with assets, the crash is a distant memory. London house prices have risen inexorably since 2010, by 31 per cent after inflation. The FTSE 100 is 58 per cent higher after dividends. Real average weekly pay is, meanwhile, no higher today than in July 2006. Those who live in Asset Britain have no idea what Austerity Britain is like.

“Labour is ignoring wealth at its peril. Reeves is rejecting the most consequential tax reforms open to her, despite polling that suggests each reform she has ruled out would be highly popular. They are also vital. Britain’s growth rate is in a multi-decade decline, while wealth inequality has become entrenched. It hasn’t fallen in the 17 years the Office for National Statistics has recorded it. Every year you can expect £4 in every £10 of new wealth to go to the wealthiest 10 per cent, while £1 in £10 is shared by the bottom half. In ­stagnant societies, capital reigns ...

“There is one more major reform Labour is refusing to adopt: a tax on the very richest ... The only way to raise money from the very richest is to charge a wealth tax, as Labour once won an election promising to do. A tax of 1 per cent on wealth over £10m would fall on around 20,000 people – the 0.1 per cent. In the 1970s Healey thought the revenues on offer didn’t justify the cost. Advani’s research has, however, shown that a one-off version of the tax could today raise £11bn. He estimates capital flight would be rare, as it was for non-doms. And evasion is less possible than people think. The wealth of the very richest is boundless yet bound in by Britain. Land may be leased out but it cannot be moved. Estates can always be taxed. It is a political choice.

“Labour has never fought against capitalism. It once sought to alleviate its inequities through control of the commanding heights of industry. Now it risks governing without a creed. Yet one is on offer. In Britain the rules of the tax game have been stacked against working people. The question for Labour is simple and deafening: are you going to fix that or not?”

[iwcprobateservicesuk]

Inheritance tax planning UK – Get Precise Solutions from IWC

IWC Probate Services is a one-stop recognised name in this domain specialisation in will writing, inheritance tax laws, and probate. They offer advice and guidance, suggesting legal ways to offset the liability, and avoid inheritance tax. A pool of experts has been working with selected financial advisors to ensure you are using the maximum ways to avoid inheritance tax through well-strategic inheritance tax planning UK.

As far as inheritance tax planning UK is concerned, it may be unfair but it is unique. There are many exemptions and completely legal methods to avoid the burden of inheritance tax. IWC are specialists in will writing, inheritance tax laws, and probate. The most crucial thing is to focus on planning and preparation – the key to avoid inheritance tax. Experts can help you with:

Will Writing Services, Lasting Power of Attorney, and Gift Allowances

Gift Trusts, Asset Distribution, and Discretionary Trusts

Pilot Trusts, Nil rate band discretionary trust, and Trust and Estate Planning

Asset Protection Trusts, Family Settlement Trusts, and IPDI Trusts (immediate post death interest)

In the UK, the inheritance tax is deemed the most unfair tax obligation. A person with accumulated wealth for which they have already been taxed throughout the course of their life, is death taxed again, at the rate of 40% for anything above the IHT NIL Band Rate. After making national insurance, income tax, capital gains and VAT contributions, the Government then subjects any estate above £325,000 (at the time of writing) to inheritance tax planning UK. Call the experts and get precise solutions.

[willsandtrusts]

Common Estate Planning Mistakes and How to Avoid Them

Discover the top estate planning mistakes, from neglecting updates to overlooking digital assets. Learn strategies to avoid costly errors, minimise inheritance tax, and secure your family’s future. Get expert guidance from Wills & Trusts Wealth Management to build a personalised and effective estate plan today.

[esoanem]

Gay marriage became an especially important battleground in part because of AIDS as well. Rights around healthcare directives become extremely important when large portions of the community are suffering with a deadly disease that's being neglected by the establishment and vilified in the media

There were a bunch of assimilationist gay people who took gay marriage as the last word, but they're a small subset of the people who fought (and continue to fight) for marriage equality

this might be because I’m a family law lawyer and also an old crone who remembers when marriage equality wasn’t a thing (as in, marriage equality only became nation-wide two months before I went to law school), but I have Strong Feelings about the right to marry and all the legal benefits that come with it

like I’m all for living in sin until someone says they don’t want to get married because it’s ~too permanent~ and in the same breath start talking about having kids or buying a house with their significant other. then I turn into a 90-year-old passive-aggressive church grandma who keeps pointedly asking when the wedding is. “yes, a divorce is very sad and stressful, but so is BEING HOMELESS BECAUSE YOU’RE NOT ENTITLED TO EQUITABLE DISTRIBUTION OF MARITAL PROPERTY, CAROLINE!”

[wealthmanagement25]

Comprehensive Financial Planning and Inheritance Tax Strategies in Bristol with Harry Robinson

When it comes to securing financial stability for the future, effective planning is essential. For residents in Bristol, UK, Harry Robinson provides professional financial planning services that focus on creating strategies for wealth accumulation, management, and protection. Among the many aspects of financial planning, inheritance tax planning is a vital area that deserves particular attention.

Financial Planning in Bristol

Harry Robinson understands the complexities of personal finances and offers bespoke financial planning solutions tailored to the unique needs of each client. Whether it’s for individuals looking to optimise their retirement savings, families aiming to plan for their children’s future, or business owners seeking effective strategies for wealth protection, Harry Robinson provides comprehensive advice. By working closely with clients, he creates personalised financial roadmaps that maximise opportunities for growth, minimise risks, and ensure long-term financial health.

UK Inheritance Tax Planning

In the UK, inheritance tax can have a significant impact on the assets passed down to heirs. For many families, this can result in a large portion of their wealth being lost to taxation. To counter this, inheritance tax planning is essential. Harry Robinson offers expert advice on how to structure your estate and manage assets to reduce the potential inheritance tax burden. By considering options such as gifts, trusts, and life insurance, he helps clients devise strategies that protect their estate and ensure that more of their wealth is passed on to future generations.

Tailored Advice for Your Future With in-depth knowledge of both financial and inheritance tax planning, Harry Robinson is committed to helping clients navigate these complex areas. His goal is to provide clarity and peace of mind, ensuring that every financial decision is made with both immediate and long-term goals in mind. Whether you’re looking to optimise your financial strategy or ensure that your legacy is preserved for future generations, Harry Robinson’s expert advice can guide you through the best possible solutions for your unique situation.

[deborahbowersuk]

Inheritance Tax Specialists | Inheritance Tax Advice UK

Inheritance Tax Advice UK is a rigorous affair, and can be rather complex for many people, So, when dealing with clients at Deborah Bowers Will Writing Services, we ensure that you receive quality inheritance tax specialists uk and guidance on how to help handle your estates thus helping to minimize the inheritance tax expenses.

[eaglesnick]

Is Capitalism Working: Landowners (1)

When I asked the question,  “Is capitalism working?" (see last post) I quoted Kate Raworth’s definition of capitalism wherein it is argued that our present economic system is designed to provide profit for the already wealthy – shareholders, landowners and moneylenders. It is certainly true that increases in share price and dividends are not matched by an equal increase in workers pay: shareholders increase their wealth at the expense of ordinary working people. Similarly, we can check if landowners and landlords have seen an increase in their wealth compared to the rest of us.

The whole question of land ownership and associated wealth is a complicated one, not least because landowners have been very good at hiding their assets, and therefore their wealth and income. An additional problem is that there are different types of landowner. Today I am going to deal with the aristocracy and gentry.

The aristocracy and gentry, relics of Britain’s feudal past, still own 30% of Britain’s land. Much of this is agricultural land and until we left the EU they received taxpayers money in the form of farming subsidies, based not on need but on the size of their land holdings. Under this scheme the aristocracy and landed gentry have received tens of millions of pounds of taxpayers money.   This has helped them double their wealth over recent years.

“Britain’s 600 aristocratic families have doubled their wealth in the last decade and are as ‘wealthy as at the height of Empire’” (inews: 19/07/19)

One reason their wealth has increased is because

Countless peers with major landholdings and stately homes have put all their assets into discretionary trusts, thereby evading both public scrutiny and inheritance tax." Guardian: 07/09/17)

In addition

 “The asset-owning super-rich to the extent that they include the aristocracy would appear to have benefited during the period after the financial crisis from factors such as quantitative easing which allowed them to use those assets to secure mortgages and debts to buy further assets.” (Inews.co: 19/07/19)

Put simply, quantitative easing (QE), the governments preferred way out of the financial crash of 2008, saw a massive increase in the money supply, which in turn saw a massive rise in wealth for the already wealthy. QE led directly to asset price inflation. In short the landowning aristocracy and gentry saw the value of their land rise and rise.

“QE…increases the prices of things such as shares and property”  (BBC News: 01/11/22)

Consequently, as the majority of the UK population saw a fall in their living standards and wages due to Tory austerity,  the aristocracy and landed gentry saw their wealth increase.

At this point it is important to note that the aristocracy have the legal right to sit in the House of Lords. They are not voted in. They represent no one but themselves, yet they are a powerful influence on the laws of this country. It is therefore inconceivable that the laws they influence do not profit them in some way.

One law in particular springs to mind.

“One legal provision unique to England and Wales has been of particular importance to these aristocratic landlords: over the centuries they built many millions of houses, mansion blocks and flats, which they sold on a leasehold rather than freehold basis. This meant that purchasers are not buying the property outright, but merely a time-limited interest in it, so even the “owners” of multimillion-pound residences have to pay ground rent to the owner of the freehold, to whom the property reverts when their leases (which in some areas of central London are for no more than 35 years) run out. This is unearned income par excellence.” (Chris Bryant, Guardian, 07.09.17)

Another use they make of the laws they themselves influence is the avoidance of inheritance tax. Quoting Chris Bryant again

The primary means of squirrelling away substantial assets so as to preserve them intact and deliver a healthy income for aristocratic descendants without bothering the taxman is the trust. Countless peers with major landholdings and stately homes have put all their assets into discretionary trusts, thereby evading both public scrutiny and inheritance tax.”

In conclusion, the evidence shows that certainly over the last 15 years, as the majority of working people have became poorer, the aristocracy and landed gentry have become steadily richer. This fits Kate Raworth’s definition of capitalism, not only because it sees the already wealthy making even more money at the expense of the rest of us, but it also demonstrates how they influence the legal and political system to secure and reproduce their already privilege position within society. 

[news-buzz]

Farmers threaten to unleash 'buckets of s***' on Parliament | UK | News News Buzz

Angry farmers threaten to unleash ‘buckets full of s***’ on Parliament in huge tax protest. (Image: Getty) Farmers across the UK have reportedly voiced outrage over changes to inheritance tax announced in Rachel Reeves’ budget. Right-wing political website Guido Fawkes reported sources claiming that some farmers are threatening to dump “buckets full of s***” on Parliament as anger erupts…

[bluebonduk]

Discover the benefits of setting up a grandchild's trust in the UK. Learn how this financial tool can help secure your grandchild's future by safeguarding funds for education, housing, and other key life expenses. We’ll explain how it can reduce inheritance tax, provide financial control, and offer peace of mind for both grandparents and parents. Empower your family by planning for the next generation’s financial wellbeing with a tailored trust.

[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]

Nil rate band inheritance tax

The Nil Rate Band (NRB) is the threshold below which no inheritance tax is due. In the UK, the NRB is currently £325,000. Assets above this threshold are subject to a 40% tax rate. Certain exemptions and deductions can be used to reduce the amount of inheritance tax owed. Visit our website for more information.