Chartered Valuation Surveyors and Inheritance Tax Management Integrity

Phone:

01428 708 056

Email:

pclayton@beauwest.co.uk

beauwest IHT management integrity in godalming

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IHT project management service - be on your guard

Obtaining the right expertise is reserved for the few that can afford to appoint the best IHT lawyers in London at up to £600 an hour.

This still requires a significant understanding of the subject matter to project manage a client’s objectives and to control costs.

Too many will be mindful of the difficulty of sourcing the right head-on advice that meets with client’s objectives:

Lawyer’s scale of charges and typically how instructions get drawn out, adding to fee levels
Law firms charging by the hour to research a field of expertise that they are not so proficient in and then consulting Council’s opinion
The saying: 'If we are wrong you can sue us’
The expert IHT consultant advice that was not so expert
The Beauwest IHT project management service was founded to share with individuals a ‘straight-talking, cut to the chase’ IHT solution, subject to meeting qualification criteria, for qualifying clients requiring integrity in the procedure to save Inheritance tax on residential property.

A pre-qualification attention to detail assessment is offered - saving clients being sidetracked by lawyers' learning curves and agendas to boost their timesheets.

why use beauwest IHT management integrity

The firm provides IHT management integrity on the criteria and pre-requisites for the client’s wishing to consider the tax saving options and tax efficiency of IHT planning with the family home compared to the other IHT saving options accepted by HMRC.
 
Expertise comes from the proprietor after his own experience of the significant complexities and due diligence needed in the area of IHT tax mitigation. This involves consulting with tax accountants, several firms of lawyers and the overwhelming time spent on verifying authority from Finance Acts and HMRC resources. The firm will project manage the appropriate course of action that allows a genuine tax saving.
 
The firm is supported by the expertise of an independent firm of IHT lawyers in drafting client documentation and a firm of Independent Financial Advisors in addressing other considered options of tax efficient IHT insurance cover.
 
Services avoid the use of substantive trust promoted by firms as a tax saving mechanism, which is far from tax efficient.

Inheritance tax management for executors and individuals

  • At Beauwest IHT Management Integrity, we provide executors, individuals, and their families a ‘cut to the chase’ service line on the prerequisites to manage and reduce inheritance tax on the family home of an elderly parent or relative valued over the nil rate band
  • The current tax-free threshold -‘nil rate band’ - being £325,000 or £650,000 between couples; and the addition of the Main Resident's relief
  • Covering how this can be done, the procedures to follow for qualifying clients and how an elderly parent can remain in occupation in accordance with HMRC guidelines
The IHT project management service is available to fast track a 'cut to the chase' solution for clients seeking the knowledge and procedures to save inheritance tax on residential property.

Overview of HMRC allowances to reduce your estate for IHT purposes

Married Couples

Any amount of transfers between spouses can be made without a charge to IHT.

Gift Exemptions

By making use of the annual small gift allowance, you can reduce your estate by paying £250 to as many people as you like without triggering an IHT charge.
There is also the larger annual gift allowance of £3000 that can be given in total to one individual only.
Any unused gift allowance can be carried forward to the following tax year, meaning a couple can gift £12,000 to one individual if they have not used their allowance for more than a year.

Regular gifts/payments that are part of your normal expenditure out of income

Any monthly or regular gifts you make out of your after-tax income, not including your capital, are exempt for IHT as long as you can show;
  •  A pattern of giving on a regular basis (i.e. monthly or at birthdays and Christmas)
  •  The nature and reason for the gift
  •  After deducting the usual living expenses of the transferor, that the net income was sufficient to make the gifts taking one year with another, without having to draw on capital.
Thus, regular payments can be made out of the excess income of the transferor, as long as it can be shown that it was affordable.

Gifts made in consideration of marriage or registration of a civil partnership

Parents can give up to £5000 to a child on the marriage or registration of a civil partnership. Grandparents can give up to £2500. Others can give up to £1000.

Gifts to Charity

All gifts to charities and political parties are exempt. If you give at least 10% of your assets to charity, you can reduce IHT from 40% to 36%.

Potentially exempt transfers

You can gift more than the annual limits mentioned but must survive for at least another seven years for such gifts to be IHT exempt. If you die within this time, the beneficiaries of the gift have to pay IHT on a sliding scale. 40% if you die within the first 3 years, reducing to 8% if you die in year 7.
The person receiving the gift must get the full benefit. For example, if you gift your house to your children, but continue to live there without paying a market rent then the house remains in your estate for IHT purposes.

Smaller Companies

Investments in smaller companies are exempt from IHT if you hold on to the shares for at least 2 years under Business Property Relief.
Companies listed on the alternative investment market (AIM) qualify for this, as do investments in companies that qualify as enterprise investment schemes.

Trusts

You can gift assets, including cash, property or shares, worth up to the IHT threshold without any tax charge.
You can gift more than this, but you will pay a 20% charge on the amount above the IHT threshold. There is also a periodic charge of 6% on all assets above the IHT threshold every 10 years. The trust fund can be subject to IHT when the initial capital is transferred out. There is an exit charge based on the rate of IHT paid based on the last periodic charge – the time elapsed since the last periodic charge and the amount being distributed from the trust. The maximum exit charge will rarely exceed 6%.

Insurance

You can use a life assurance plan to pay your IHT plan on death. The insurance is written and you effectively gift the policy to a bare trust where insurance receipts can then be paid to trustees for distribution to beneficiaries.

Get in touch with us for more information.

Phone:

01428 708 056

Address:

1 Shillinglee Park House, Shillinglee Park Rd, Chiddingfold, Godalming, Surrey, England

Email:

iht@beauwest.co.uk

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