E
Election (doctrine of)
14/04/2011
In Snell’s Equity 31st edition it says
“Election in equity arises where there is a duality of gifts or of purported gifts in the same instrument, one gift being of the donor’s own property to E, and the other being of E’s property to X. In such cases an intention is implied that the gift to E shall take effect only if E elects to permit the gift to X also to take effect”
This problem can therefore arise in Wills where a gift contained in it is in apparent conflict with the ownership of the asset in question.
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Entrepreneur's Relief
14/04/2011
Radical changes to CGT were made with effect from 6 April 2008 in an effort to simplify the rules and to charge to tax at the full rate on hedge fund owners. At the time they were successfully achieving an operational rate of tax of 10% on what were massive profits, engineered to be capital profits, and not income returns.
One result of these changes was Entrepreneur’s Relief (ER) - a not as useful replacement for Business Asset Taper Relief.
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Excepted Estates
14/04/2011
Excepted estates are those estates which do not have to submit a full account on IHT 400 to HMRC of the estate of the deceased person, largely because they are small (under the value the of the NRB on death) or they are exempt from IHT (are in favour of a spouse or civil partner or in favour of charity and worth less than £1 million).
The excepted estates procedure has been reviewed several times in the last few years in an effort by HMRC to reduce the number of cases where a full IHT 400 has to be completed in the estate.
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Excluded Property
28/03/2011
Inheritance Tax (IHT) applies to transfers of value made by a person domiciled within the UK or a deemed domiciled person unless the transfer is exempt or potentially exempt. Some interests held by a person are excluded from the IHT regime and therefore even if they are the subject of a transfer of value they are not subject to IHT – s.6(1) IHTA 1984. ‘Excluded property’ is therefore not included in the transferor’s estate on death nor is it taxable as part of the relevant property regime charges if it forms part of a settlement.
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Execution of a Will
31/05/2011
Will draftsmen and probate practitioners will be familiar with the requirements for a valid Will as far as execution of the document is concerned – it must comply with s.9 Wills Act 1837 but in what circumstances might the execution still turn out to be valid when not signed strictly in accordance with the basic requirements? The recent case of Barrett v Bem [2011] EWHC 1247 is a fascinating review of what passes muster.
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Exempt transfers
14/04/2011
Inheritance Tax law is contained in the Inheritance Tax Act 1984 It may be charged on certain lifetime gifts, certain transfers into and out of trusts and on the value at the date of death for the estate of the deceased.
All UK domiciled individuals are chargeable to IHT on all their worldwide property. Non UK domiciled individuals are chargeable to IHT in respect of their UK property only.
IHT is however not charged on any part of a chargeable transfer which is exempt.
