P
Pension By-Pass Trusts
01/10/2010
A useful way of helping a wealthy couple to reduce the overall IHT bill across the two estates is to suggest the creation of a trust during lifetime to receive pension lump sum death benefits. Such trusts will be even more useful once the outcome of the summer consultation, on the IHT & other tax treatment of pension funds, is announced in the autumn budget. Meanwhile, care is needed in drafting the relevant trust because of the coming into force of the Perpetuities & Accumulations Act 2009.
Read the detailed description...
PET
24/03/2009
A Potentially Exempt Transfer is a life time gift which is exempt from a charge to Inheritance Tax if the donor survives 7 years after the gift. If the donor dies within 7 years the gift becomes chargeable with the donee liable to pay any tax arising.
Read the detailed description...
Pilot Trusts
22/05/2011
Pilot trusts are trusts created during the Settlor’s lifetime to maximise the potential over time to save IHT.
Read the detailed description...
Pre-Owned Assets Tax
13/04/2011
The charge to income tax on certain assets which are described as pre-owned assets (POA) contained in the Finance Act 2004 was targeted at the range of schemes that allowed wealthy taxpayers to give their assets away, or achieve the appearance of doing so, and so benefit from the inheritance tax (IHT) exemption for lifetime gifts, while in reality retaining continuing enjoyment of and access to those assets, much as before. POA tax (POT) is designed to discourage the use of such schemes.
Read the detailed description...
Principal Private Residence Relief (PPR Relief) for CGT
04/04/2009
CGT is charged on chargeable assets disposed of by chargeable persons. Certain assets may carry with them an exemption from charge and an example of that is a person’s principal private residence.
s.222 TCGA 1992 provides that a gain shall not be a chargeable gain if it is a gain to which the section applies and to the extent that it relates to the disposal of a dwelling-house [or part] which is, or has at any time during the individual’s period of ownership been, his only or main residence [s.222(2)(a)], or land which he has, for his own occupation and enjoyment with that residence, as its garden or grounds up to the permitted area [s.222(2)(b)].
A married couple or civil partners living together can only have one ‘only or main residence’ between them either in fact or by election and such election must be given by them both if it affects both of them – s.222(6)(a). Difficulties with the relief therefore arise with separated and divorced spouses or civil partners and people who are not married.
Read the detailed description...
Proprietary Estoppel
26/04/2009
Proprietary estoppel is the process by which the Court can recognise a party’s interest where it would be unfair to enforce the other’s strict legal rights.
