HMRC has issued updated guidance reminding tax agents that estates cannot move between informal reporting and complex estate reporting once they have been registered for Self Assessment during the same administration period. Where an estate initially qualifies for informal reporting but later becomes more complex, agents must register it for Self Assessment through the Trust...
Court Rules Executors Need Not Remain Neutral in Cases of Suspected Deception The England and Wales High Court has confirmed that executors are not always required to remain neutral when there is evidence suggesting dishonesty or deception in relation to an estate. In Teixeira v Moaven [2026] EWHC 1215 Ch, the court examined a deathbed declaration...
Changes to inheritance tax relief announced in the October 2024 Budget are causing concern among farming groups. From April, agricultural property relief and business property relief will be capped at £1m per estate, with assets above that level subject to a 20% effective IHT rate. Although the Government has since increased the combined relief threshold...
A House of Lords report has raised concerns about the practical impact of new inheritance tax rules affecting pension assets. From spring 2027, families will have just six months to report pension valuations and settle any IHT due. The report warns that the tight deadline could discourage people from acting as personal representatives, given the...
Growing numbers of families are turning to trusts as part of inheritance tax planning ahead of expected reforms. HMRC data shows that 121,000 trusts were registered in the 2024/25 tax year, up from 115,000 the year before. With the inheritance tax nil-rate band remaining frozen at £325,000 since 2009, advisers report increased interest in alternative...
A welcome update for succession planning The UK government has announced an increase to the IHT relief cap, bringing important changes for families, farmers, and business owners who rely on Agricultural Property Relief (APR) and Business Property Relief (BPR). This update is designed to provide greater certainty and protection for those passing on family assets,...
Financial advisers expect an increase in marriages among older couples ahead of planned inheritance tax changes. From April 2027, pensions will be included within inheritance tax calculations, potentially increasing the tax burden on families. Married couples and civil partners can combine allowances, allowing significant sums to be passed on tax-free, including additional relief linked to...
The government has confirmed that inheritance tax relief for farmers will increase, lifting the threshold from £1m to £2.5m. The move follows widespread concern within the farming community, with concern raised over plans set out in last year’s Budget that would see a 20% tax on inherited agricultural assets worth more than £1m as of...
Second ‘wife’ establishes claim against bigamist’s estate The England and Wales High Court is gradually disentangling the case of the late James Dinsdale, who died intestate in 2020 leaving a GBP1.8 million estate. He had a legal wife and a second wife whom he had bigamously married in America without divorcing the first. The second...
Inheritance tax (IHT) is often viewed as a financial burden; however, in certain situations, it can provide strategic advantages, particularly when a company repurchases its shares. For family-run businesses, this can be a tax-efficient opportunity that turns a challenge into an advantage. Understanding Share Buybacks and Inheritance Tax (IHT) When a shareholder passes away, their...
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Copyright by CareAccountancy. All rights reserved.
