The amount of inheritance tax saved by leaving money to charities in the UK is predicted to surpass £900m (€1,027m, $1,159m) in the next financial year, following a sharp increase in the amount of charitable donations left in wills.
Financial advisers expect a boom in demand for inheritance tax (IHT) advice and are looking to strengthen business partnerships with lawyers to help them cope.
Intergenerational wealth disparity, tax simplification and removal of the £1m lifetime pension allowance are all addressed in a remarkable letter to the prime minister from Brewin Dolphin chief executive David Nicol.
Now that the start button for the phased introduction of the nil rate residential band has been pressed, John Haley, technical sales manager at Utmost Wealth Solutions, explains that there are “many holes to leap through” to achieve the biggest outcome.
The UK new non-dom rules which were dramatically dropped from the government’s finance bill has left those who prepared for those changes “in a very difficult position”, says Paul Thompson, tax and estate planning consultant at Canada Life.
A staggering 70% of people have no understanding of the new residence nil rate band allowance coming into force on 6 April, which could have serious implications for their inheritance tax planning, warns Old Mutual Wealth financial planning expert, Rachael Griffin.
An estranged daughter has lost a supreme court bid to overturn her mother’s will, which excluded her only child and left her £0.5m ($0.6m, €0.57m) estate to three animal charities, in a decision that leaves things “slightly confused”, says Old Mutual Wealth’s Rachael Griffin.
Some changes in inheritance tax law can affect wills and trusts, including the introduction of the first tranche of the Residential Nil Rate Band (RNRB) of £100,000 on 6 April 2017, says Karen Clark, tax partner in charge of the London private client team at RSM.
Rising house and equities prices will push up receipts from UK inheritance tax by £1.8bn ($2.2bn, €2.1bn) over the next five years, according to the Office of Budget Responsibility.
With changes to the UK non-domicile regime set to go live next month, Canada Life’s Neil Jones talks through what the reforms mean for property, taxation and IHT planning.
The UK government will replace the current flat fee system for grants of probates with a new tiered levy, which could see estates over £1m ($1.24m, €1.17m) tens of thousands of pounds worse off.
For British expats living in Portugal, or for those with Portuguese assets, the local equivalent of inheritance tax maybe relatively straightforward, says director of Blevins Franks Jason Porter, but succession law is very different. If advisers do not understand the rules, their client’s estate may not be distributed in line with their wishes or could…
