HMRC would appear to be benefitting well from recent property increases. IHT receipts have increased for the third year running, though they still are not at the heady levels of 2007/8 (£3.86 billion). This year HMRC received £3.1 billion up from last year’s £2.9 billion.
Frankly, estate planning should always be uppermost in any property owner’s mind. It is important to realise the distinction between owning a property as ‘tenants in common’ and ‘joint tenants’ and any property owner should take advice from fully qualified, specialist lawyers from the beginning of the process.
Even later on when contemplating selling the property, downsizing, or equity release, it is vital to check whether there will be any IHT ramifications.
Many parents, for example, are considering how they can assist their children in accessing the property ladder and are raising capital from their primary asset: their home.
There are always IHT ramifications - inter vivos gifts attract strict time limits and should be ‘without reservation’ otherwise it is likely that the situation will attract the attentions of HMRC. In fact, there has been a 90% increase in such HMRC investigations which can be lengthy, costly, and complex.
This can be a legal minefield which your dependants will have to negotiate; it is wiser to take specialist advice before any important decisions concerning your property are made.
If you require advice contact us by either completing our online enquiry form here or telephone us on 0207 387 2032. Janak Bakrania is our specialist lawyer.
