Tax Update for Private Client Practitioners 2023

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KEY SUBJECTS

• IHT PLANNING FOR SPOUSES IN WILLS TO MAXIMISE OPPORTUNITIES
• TAX PLANNING TIPS AND TRAPS ON DIVORCE AND SEPARATION OF SPOUSES
• IHT PLANNING, INCLUDING VARIATIONS, IN ESTATES
• SDLT PLANNING FOR PROPERTY OWNERS
• IHT ISSUES FOR PENSIONS AND LIFE POLICIES

SPEAKERS

Gill Steel, Solicitor & Director of LawSkills Ltd

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer

Simon Douglas, Barrister, 5 Stone Buildings

PROGRAMME

CHAIRMAN’S INTRODUCTION

IHT PLANNING FOR SPOUSES IN WILLS TO MAXIMISE OPPORTUNITIES

With the Inheritance Tax (IHT) Nil Rate Band (NRB) and Residence Nil Rate Band (RNRB) both frozen for more than another 3 years (until April 2026), it’s vital for IHT mitigation for spouses to plan so that they are not wasted. Likewise, reliefs for business and agricultural property (BPR & APR) at 100% are too good to waste, so in this talk we will consider:

• Effective will drafting to utilise the NRB & RNRB, as well as any transferable from late spouses estates
• Using trusts to avoid losing the RNRB to taper on estates over £2m
• Trust options for assets qualifying for BPR & APR and how to adapt to changes
• Options for will planning for spouses without descendants or who don’t qualify for RNRB.

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer

TAX PLANNING TIPS AND TRAPS ON DIVORCE AND SEPARATION OF SPOUSES

Separation and divorce are complex enough with emotions often running high but, in the middle of this, tax must be contemplated and it is difficult. The purpose of this presentation is to explore the tax implications of separation and divorce identifying tax planning issues where possible in the light of recent developments

• Overview of UK tax system
• Income tax
• Capital Gains Tax and the new rules for separating spouses from April 2023
• IHT
• SDLT & other land taxes

Gill Steel, Solicitor & Director of LawSkills Ltd

IHT PLANNING, INCLUDING VARIATIONS, IN ESTATES

With asset values so volatile, and personal circumstances of beneficiaries so variable, estate administration often involves opportunities for IHT mitigation. With the best will in the world, many clients will not have done up-to-date tax planning in their wills, and there is often scope to offer better alternatives to beneficiaries post death. This talk will explore:

• Trusts of property: choosing the right form of trust, with the benefit of hindsight, for security and tax mitigation
• Utilising loss relief, with some property values now falling (and estimates of 10% losses in value), and what to do with mixed gains and losses
• Using Variations of wills to secure better IHT solutions, and some traps to watch

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer

IHT ISSUES FOR PENSIONS AND LIFE POLICIES

The IHT and CGT treatment of pensions and life policies is generally favourable and offers opportunities for estate planning. However, the tax treatment is complex, and can lead to unforeseen charges, especially with non-standard arrangements. The talk will give an overview of this area of law, with pitfalls to avoid and some planning tips.

• Overview of IHT regime for pensions – privileged treatment for pension schemes
• Taking benefits and omission to exercise pension rights during lifetime
• IHT position on death – death benefits and assignment of pension rights onto trust
• Estate planning implications of the Lifetime Allowance
• Life policies – IHT treatment
• Settlement on trust of life policies

Simon Douglas, Barrister, 5 Stone Buildings

SDLT PLANNING FOR PROPERTY OWNERS

SDLT has become an extremely complex and confusing tax so the aim of this presentation is to highlight the traps for the unwary and help to mitigate the cost of making expensive errors

• Classification of property
  • Residential
  • Non-residential
  • Mixed use
  • High Value residential property
• Rates
• No chargeable consideration
• Multiple dwellings relief
• First Time Buyer’s relief – effect of inheritance from estates or lifetime gifts
• Non-resident surcharge
• 75A FA 2003 – anti-avoidance
• The new SDLT provisions from Sept 2022

Gill Steel, Solicitor & Director of LawSkills Ltd

CLOSE OF PROCEEDINGS