Capital Gains, annuities and pre-owned assets

Basic accounting 101..

Inflation Stemming entertainment; just reviewing rules for savings certificates, investment schemes, bare trusts, dividends, taxable triviality and tax relief on registered pension schemes and charities..

Capital Gains, annuities and pre-owned assets

6 thoughts on “Capital Gains, annuities and pre-owned assets

  1. The pre-owned assets tax (POT) charge has caught the main marketed IHT avoidance schemes. This involves reversionary leases, lease carve-outs and loan trusts/double trusts relating to the taxpayers main residence or valuable assets.

  2. To speak to someone who can advise on pre-owned assets tax or any other issue related to a trust call , email or request a call back from one of our specialist lawyers.

  3. Simple arrangements where, for example, parents give the property in which they live to their children (who live elsewhere), but the parents continue to live there, are not caught by the rules. This is because the gift is ineffective for inheritance tax purposes and the property would remain in the parent’s estate at death. (Technically, this simple arrangement is called a ‘gift with reservation’ for inheritance tax). An additional issue with this simple arrangement is that capital gains tax could be payable by the children in the future. This is because principal private residence relief is lost when occupation of the property as a private residence and ownership of the property are separated: The children are the owners, but only the parents occupy it as a private residence.

    1. ..return on invest in a hurry, sounds suspect..putting savings into mortgage schemes gives a higher rate of interest than isa investments anyway (no liability for tax etc)

  4. The income tax charge will be charged from 6th April 2005 and will be broadly based upon the existing benefits in kind legislation. The tax charge will be applied against an amount equivalent to the annual cash value of the benefit and there is a de-minimis limit of £5,000 per annum. Although this tax charge comes into effect from 6th April 2005 onwards it will be imposed against schemes that were already in place before this tax charge was introduced.

    1. Making a business out of welfare, or disclosure of income from ltd / public interests – either way cancel’s out the requirement for concern of new laws – unless a family business (with allot of children!?)

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