Keeping your Golden Years glittering -
find the best solutions to protect you and your family’s future
With the pensions and tax landscape markedly shifting, it is crucial individuals seek advice for issues surrounding buy-to-let assets, Inheritance Tax and non-dom status, to ensure they are getting the most out of their life savings, both now and in the future. David Hannah, Principal Consultant, Cornerstone.
Property has always been a trusted investment for years of hard-earned savings, to use both as an income source and as a means to provide capital for the next generation. But the rules are changing.
Although buy-to-let remains a robust option with its strong capital growth and income potential, recent revisions which removed the higher-rate interest relief on buy-to-let mortgages are making it particularly diffi cult to make a profi t. For those who are fortunate enough to own whole properties or higher yield portfolios, or indeed have low/no mortgage, the new measures will not have as damaging an impact. Individuals not falling into this category, however, will fi nd the climate increasingly diffi cult if they fail to seek out alternatives.
Investing in property funds rather than individual properties maybe a more practical option to consider. In spite of off ering lower
yields, they are relatively secure and remove worry around the elimination of higher interest relief.
By removing yourself from a direct bricks and mortar investment, you will not only be saving yourself time and money now, but you will be wisely planning for your loved one’s futures. Taxes on assets such as buy-to-let properties are applicable in life and in death, with the potential to leave your family with huge Inheritance Tax (IHT) bills and may lead them being forced to sell the asset to pay for these.
If you choose to retain a current buy-to-let portfolio, there are still options available to ensure you successfully navigate the tax landscape.
Transferring your assets to international pensions, where UK IHT is not applicable, is a means of protecting your family from the burden of additional tax. Currently a stable
and popular option, advice should be sought before setting up any arrangements.
The exemption of pensions from IHT means, as property assets held as an investment in pension funds, either in the UK or internationally, are protected from IHT and in addition are not subject to Capital Gains Tax (CGT) on its disposal.
Similarly, the proposed review of off shore companies will not aff ect pensions. As a result, all owners of UK property both here and overseas will be paying IHT from 2017 on residential property, but not on their pension funds.
Everyone’s circumstances are diff erent. By taking the step towards seeking the best, bespoke advice on your assets from a trusted specialist UK advisor, you can ensure a lifetime of hard work is safe both now and for future generations.
For a free consultation, please contact us on:
www.ctatax.uk.com ·
enquiries@ctatax.uk.com · UK offi ce: 01858 439 033 Offi ces in London, Leicester, Dubai and Guernsey
Temple Tax Solutions Limited trading as Cornerstone Tax is an Introducer Appointed Representative of LLP Services Limited which is authorised and regulated by the Financial Conduct Authority.
BESPOKE WEALTH TA X GROUP
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