Private Client & Wealth Planning

If the property has been your only main residence over the period of time you have owned it then there is no need to report. However, if this is a second property, or one where you have only lived for part of the period of ownership then it may be reportable. Please contact our private client team to discuss if a report is necessary.

The rules for Business Asset Disposal Relief have changed and only the first £1 million of your lifetime chargeable gains will benefit from the 10%. However, there are a number of other conditions you need to satisfy. If you are contemplating a sale, please contact our private client team as we can guide you on how to structure any sale to maximise the reliefs available.

Residence Nil Rate Band (RNRB) tax relief is due where the property you live in (or have lived in) is passing to your direct descendants. However, there are several other conditions, and if your estate is greater than £2 million, including any business interests, even if these are exempt from Inheritance Tax, then the relief will be withdrawn. If you would believe you may be affected by this, please contact our private client team, to discuss how we can assist you.

Trusts can be set up during lifetime or on death and are created by transferring assets to trustees to hold and manage for the benefit of specific people or a group of people (the beneficiaries).

You can be appointed as one of the trustees although we would always recommend that there are at least two trustees. We have a separate trustee company that can act as an independent trustee to assist with decision making and ensure trustee duties are met.

There are tax consequences of doing this which may negate the reason for setting the trust up in the first place, but we can advise further on the implications and potentially different ways of achieving your objectives.

There are costs associated with setting up and maintaining a trust, but this needs to be considered against the potentially significant tax savings available. It can be possible to achieve your aims with a relatively simple trust where compliance obligations can be kept to a minimum.

Whilst incorporation can be the correct answer for some, the taxes that can be created by incorporating your property business need careful consideration. Capital Gains Tax (CGT) and Stamp Duty Land Tax (SDLT) can be due when property is moved into a company, plus any profits and capital is then held by the company and to access this you need to withdraw it from the company, incurring more taxes. Our dedicated private client team can help you to examine the options and decide which structure is the most tax efficient for you.