Principal Private Residence Relief - Prove it or Lose it  HMRC is coming down hard on property owners who claim tax relief, as one homeowner has recently found out to his cost. HMRC challenged the property owner to prove that a flat he owned between 1999 and 2004 was his principal private residence (PPR) once he failed to declare gain on sale profits of £70,000 after letting the property. Despite claiming he owed no capital gains tax, he could not provide any documentary evidence to prove it was his PPR and now faces a raft of hefty tax and legal bills. This case, which you can read in full on our website, shows the importance of understanding tax laws in relation to second properties. Speak to our experts for essential tax advice.
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Making an application for probate has many pitfalls, and time and time again the same mistakes are made by those applying to the Courts. To counter these small but ultimately time consuming mistakes, the Court Service has published further guidelines which are outlined in their Inheritance Tax and Trusts Newsletter, which can be accessed via our website. If you want to ensure an estate of which you are the executor is dealt with efficiently, our experienced probate team will be pleased to assist you.
The regime governing charities has been progressively tightened up over the years, making the sort of scandals that were once not uncommon much more of a rarity. This means that trustees now have to adopt a more professional attitude to the management of a charity's affairs than was necessary in the past.
Inheritance tax (IHT) is payable at 40 per cent on the net value of a person's estate above (2010/11 rates) £325,000 (the current nil rate band). It affects an increasing number of people owing to the rise in house prices in recent years. One straightforward method of avoiding IHT is through discounted gifts.
HM Revenue and Customs (HMRC) offer useful guidance on the mechanics of the transfer of the unused IHT ‘nil rate band’ between spouses or civil partners and gives several examples of this complex relief.
The law recognises that some people (such as solicitors or accountants) have a high degree of influence over other people (their clients), since clients hire their professional advisers for the specific purpose of giving advice. However it is not normally with regard to professional advice that undue influence claims come into being. Normally these arise when someone has been influenced by another person to do something which is to the first person's detriment and which normally is for the benefit of the other.
Many people, as they grow older, worry about where they will live if they are no longer able to manage in their own home. For some, the need will arise for nursing home or residential care. The cost of care varies greatly, depending on the kind of care needed and the facilities the home offers. The sooner this issue is thought about and planned for the better.
