property platform Inheritance tax changes; what the new rates mean


Many rural properties have a significant value and under existing rules, when someone dies and they are passed on to the next generation, inheritance tax is payable at 40% on individual estates worth over £325,000 (per person). Up to £325,000 is called the nil-rate band and any tax liability is calculate on the value of the total assets they leave behind when they die. Couples could leave a home worth £650,000 without it attracting inheritance tax (singles £325,000).This remains unchanged. Above the threshold, the charge is 40% of the value of the property.


But from the start of the current tax year, the tax-free allowance began to increase in certain circumstances:


• A new tax-free ‘main residence’ band will be introduced, but it is only valid on a main residence and where the recipient of a home is a direct descendant (classed as children, step-children and grandchildren).


It is being phased in gradually, starting at £100,000 - meaning a total allowance of £425,000 from 6 April 2017, rising by £25,000 each year until it reaches £175,000 - meaning a total allowance of £500,000 in 2020.


• So as of 6 April 2017, the maximum that can be passed on tax-free is £850,000 for married couples or those in


a civil partnership, £425,000 for others. For singles, this is made up of the existing £325,000, plus the extra £100,000. For couples, when the first one dies their allowance is passed to the survivor, so that £425,000 is doubled to £850,000. Inheritance tax has always been one of the most unpopular of taxes, as it effectively reduces the amount of money people can pass onto their children and/or other relatives and friends. So whilst this change will be helpful, there are other steps people can take to reduce the tax burden. One way is to adopt


the ‘little and often’ strategy that allows you to give away £3,000 per year without any future liability to tax. There is also a ‘seven year gift rule’ which allows a person to give money or assets of unlimited value. The recipient will not pay inheritance tax as long as the person lives for at least seven years. If the person lives for at least three years, taper relief begins to apply and the potential inheritance tax reduces each year, to nil at seven years.


CKD Galbraith Expansion


Independent property consultancy CKD Galbraith has strengthened its commercial and rural divisions with a number of new appointments and promotions.


The expansion of the firm’s services follows a successful transition period with new chief executive, Pam Over, in post since January and includes a notable expansion of its commercial property division.


The firm will provide a UK-wide specialist investment agency brokerage service led by two highly experienced practitioners in the commercial sector. Jamie Thain and Will Sandwell, who worked together for more than 10 years at GVA and James Barr, join as Partner and Associate respectively. They will be based out of the George Street Edinburgh office, where the firm’s headquarters moved ten years ago.


The firm’s rural business stream welcomes both the new appointment of land agent Alice Wilson to the Ayr office, returning to her farming based roots, and also the 2017 intake of five rural management and agency graduates in their offices throughout Scotland, with a number returning to the firm following successful student work experience


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placements last year. The firm has also announced new financial year promotions, including Alistair Christie, Charlotte Maclean, Claire Acheson, and Harry Stott who make the step-up from associate to Senior Associate. In addition Anna Henderson, Dan Campernile, Hannah Christiansen, Lucie Howatson, Marion Currie, Poppy Baggott, Rachel Myles and Willy Inglis have been promoted to Associates.


Pam Over said: “The firm is enhancing the breadth of knowledge, ability and professional excellence available to clients. We have a strong track record as multi-sector advisors and will continue to add additional capacity through recruitment and training, together with promotion and career development to ensure the firm’s various divisions offer clients the very best advice and opportunities.”


Property Platform promotions


If you’re selling your property and still searching for the right buyer, Equine’s Property Platform could be a good move!


Property advertising attracts 50% OFF the rate card and will feature prominently in each issue, with colour photography and contact details for your chosen estate agent – or you if you’re selling your own property.


Properties will also feature on www.theequinesite.co.uk


For more details – email property@equinemag.co.uk or contact 01228 676935.


Will Sandwell (left) Richard Higgins (middle) Jamie Tain (right) www.theequinesite.co.uk


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