In this article, PETs refer to potentially exempt transfers for inheritance tax (IHT) purposes; GWRs refer to gifts with reservation of benefit; and POAT to pre-owned assets ta Potentially exempt transfers PETs are typically lifetime transfers made by individuals to other individuals. An attraction of PETs is that no immediate IHT charge arises at the […]
Giving it all away: PETs, GWRs, and POAT Read More »
When a business incurs input tax on its purchases, it’s entitled to reclaim it from HMRC, provided the business has the correct evidence to make the claim. But sometimes, through an oversight, it isn’t claimed on time; so, what are the rules for claiming back input tax late? Normally, the input tax on a purchase
Making a late claim for input tax Read More »
The difficulties of affording a house and the potential for help from the ‘bank of mum and dad’ are often discussed. Parents may be willing to assist and this will commonly be by transferring money to children and because there is no ‘gift tax’ on such payments, it might be thought that this is the
The bank of mum and dad Read More »
Business property relief (BPR) is a valuable inheritance tax (IHT) relief, despite the restriction in relief at the 100% rate to the first £2.5m of an individual’s relevant business property from 6 April 2026. Above that threshold, the BPR rate reduces to 50%. However, any unused 100% relief allowance can be transferred to a spouse
The devil in the detail Read More »
An ‘excepted’ asset for inheritance tax (IHT) business property relief (BPR) purposes is defined within IHTA 1984, s 112 as follows: ‘(2) An asset is an excepted asset in relation to any relevant business property if it was neither— (a) used wholly or mainly for the purposes of the business concerned throughout the whole or
IHT: BPR and ‘excepted assets’ Read More »
With remote and hybrid working now firmly embedded in British working life, understanding the tax treatment of working from home remains important. The rules differ depending on whether the worker is an employee, self-employed or a company director and choosing the right method can make a noticeable difference to the overall tax position. Employees: Employer
Use of home as office: Are you claiming? Read More »
Family businesses have a unique tax planning opportunity – the ability to bring one’s spouse, civil partner or children into the business and share in the profits. Done properly, it can significantly reduce the overall tax bill. Split the profits, split the tax The fundamental strategy is simple; every individual has their own personal allowance
Keeping it in the family Read More »
The first point to note is that for business incorporations on or after 6 April 2026, FA 2026, s 39 amends the capital gains tax incorporation relief provisions in TCGA 1992, s 162, requiring a claim to be made. Previously, the application of s 162 was automatic if the requirements of s 162 were met,
Incorporation relief: How it works and other ‘twists’ Read More »
When a business sets up a new client or supplier, it is good practice to check the supplier’s VAT number because, if it is invalid, so is the tax invoice they issue, and HMRC may disallow the input tax claim. It is equally important in Northern Ireland when dealing with sales to businesses in other
How to check if a VAT number is valid Read More »
Some assets are exempt from capital gains tax (CGT), and it is always worth being aware of these. The exemption for an only or main residence (immovable property) is probably the most well-known, but there are also exemptions for chattels and wasting assets (moveable property). Chattels A chattel is, broadly, tangible movable property: something physical
Chattels and wasting assets: What are they and how are they treated? Read More »
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