Journal 008 – Reality leaves a lot to the imagination..

Reality leaves a lot to the imagination..

Stanley used our FREE Power Hour to discuss selling a UK investment property he’d owned in his own name, and for a long time. He’d ‘had enough of increased regulation, higher interest rates, and increased tax burden’

For years, he’d been a disciple of the ‘I have an accountant who looks after my property tax’ school of inactivity, right up to the point he’d dismissed both planning ideas presented to him

Maybe, the price we pay for a convenient relationship is that we’re intellectually imprisoned, but we’re not always aware of it

So, how might Stanley sell his investment property, mitigate Capital Gains Tax (CGT) and remove Inheritance Tax (IHT) liability, without using a ‘tax avoidance’ structure?

The discovery process is simple; search for the extraordinary, in the seemingly ordinary. Extraordinary ideas often grow out of overlooked ideas

Maybe consider combining targeted Enterprise Investment Schemes (EIS) with Business Relief (BR). There’s value in using structures that age well. Structures that aren’t likely to change much and, hopefully, are still in use 10 years from now

Both EIS and BR are in mainstream UK legislation. HMRC has very strict rules and regulations for the operation, and associated tax treatments, for both

So, if those are the ingredients, just need the recipe..

The UK has one of the largest, most complex tax codes in the world, estimated to cover 18,000 pages of tax laws. Then there’s HMRC guidance, case law from tax tribunals, and best practices

That’s a lot, even for our team of Chartered Tax Advisors, who focus on nothing but property tax

Being distracted by accounting, cash-flow predictions, management accounts, reporting, VAT, etc might mean that focus is not entirely on solving tax problems. Just saying!

Let us review your property and tax planning with you. Experience the Power of a FREE Hour here

 

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