It is anticipated that as lockdown restrictions ease, and particularly with children and young adults returning to education, cases of meningitis will start to rise.
Gifting and Investment
Effective inheritance tax planning generally revolves around gifting or appropriate investment. Typically a sophisticated client will require a combination of the two. A client generally needs to have survived the making of a gift by seven years to ensure that the subject matter of the gift cannot form part of their estate for inheritance tax purposes. Additionally, in the event of investing in something that will attract relief from inheritance tax, they will need to have made that investment more than two years before their death and held it until the time they die.
The obvious concern that we have given these rather strict timetables is the case of a client receiving a terminal diagnosis and a prognosis that they are not even expected to survive the two-year period. Insurance for such a client would be difficult (if not impossible) to obtain, and it is tempting at that point to give up on inheritance tax planning altogether.
There is a somewhat little known legislative point, however, which can be of assistance.
It is not uncommon for us to act for the owners of limited company businesses in which a parent or parents own a small share. These shares may have been given in return for providing start-up capital.
If the shares in the business qualify for business property relief from inheritance tax this, at the very least, means that that small shareholding will be relieved from inheritance tax. Of course, this might be a very minor aspect of the individual’s estate.
The reorganisation of capital rules (which you can find in Part IV, Chapter II of the Taxation of Capital Gains Act 1992 and Section 107(4) Inheritance Tax Act 1984) can be of use here. The rules provide that if the company carries out a rights issue and the client in question takes up shares to which he is entitled from that issue – which shares must be directly connected to his initial shareholding – this further shareholding immediately qualifies for business property relief without the two-year waiting period.
There are undoubtedly practical difficulties associated with this. The client must have the spare capital to be able to make such an investment and, further, the business must be able to demonstrate that there is a business case for attracting this investment. Fortunately, the vast majority of businesses can find a reason to spend money!
By way of forward planning, it is often a good idea to consider whether clients who own businesses should give a very small number of shares to their parents with a view to future inheritance tax planning.
We will be putting on a seminar in 2018 covering this particular topic in more detail. If you consider that it might be of interest, please get in touch with James Hall or please attend our seminar to find out more.
As we continue to emerge from lockdown measures and deal with local measures and the short and long term economic impact of Covid-19, local authorities will need to re-assess how services will be delivered for years to come.
The Government first announced plans for a shared ownership right to buy in October 2019. At the time the sector raised concerns about the impact the plans would have on housing associations ability to borrow. An election and a pandemic later the Government announced, during the CIH Housing Festival last week, the return of the right to shared ownership as part of its Affordable Homes Programme (AHP).
Two final pieces of the possession jigsaw have been published on 15 September 2020. Mr Justice Knowles’ working group on possession proceedings has issued its guidance on the “overall arrangements” for possession proceedings.
One change proposed by the Building Safety Bill is the introduction of a duty holder regime, which will see statutory responsibility for the safety of higher risk buildings placed on key individuals
Throughout this pandemic, the Competition and Markets Authority (CMA) has been publishing various “Statements on Coronavirus” (Statements) which provide guidance on consumer rights during this time.
A recent increase in COVID-19 cases in the UK means new measures are being put in place in an effort to reduce the risk of a second wave. Whilst the impact of COVID-19 continues to be felt, it is important to remain focused on the sector’s road to recovery.
Sometimes half an hour at a conference gives you the reality that has been staring you in the face all along. That was my experience watching “Change is on the Horizon”
Following our recent e-briefing on Possession Notices, Helen Tucker and Emilie Pownall from our housing litigation team discuss the impact of the changes on social landlords.
Not only has the possession stay been extended until 20 September, the notice periods to be given to tenants has been extended in certain circumstances with some important exceptions.
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