Journal 001 – I’ve ordered a chicken, and an egg, from Amazon. I’ll let you know…​

Welcome to our new Journal of regular insights, strategies and tips that have helped others, and may benefit you too

Our first insight is a topic we discuss every day – Passing on your Property Company to your loved ones

Here’s what you need to know:
???? You can pass your company shares to your spouse during your lifetime, or when you die, free of both CGT and IHT

???? Passing your company shares to any other individual during your lifetime, likely will be subject to CGT, based on current market value

???? Your Property Trading Company may qualify for Business Property Relief (BPR) for IHT purposes. If it does, you may pass some, or all of it, to your kids or loved ones, FREE from IHT

Here’s the thing: To qualify for BPR, your company only has to be ‘wholly or mainly’ engaged in qualifying activities. This means you should make sure that more than half your activities are ‘qualifying trading activities’

What about IHT and Property Investment Companies?
The value of Property Investment Company shares are generally exposed to IHT when the owner dies, and it gets worse – It’s the base cost of your shares that’s uplifted on your death!

This means you company will NOT benefit from the uplift on properties, and will PAY Corporation Tax on capital gains, based on your original acquisition costs

OK, so you might be screwed right now, but it needn’t be the case!

Our team are Chartered Tax Advisers, work daily to minimise client’s exposure to death duties all within the letter and spirit of UK law, and HMRC rules and regulations

We’d like to help you too.

Try the Power of a FREE hour consultation here. It’s time we can’t give you back, but it may help generations of your family!

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