As the next budget on October 30th 2024 approaches, there are likely changes to Capital Gains Tax (CGT) and Inheritance Tax (IHT) that could impact your financial planning. Here’s what you need to know and how MDW Solicitors can help you navigate these changes.
Capital Gains Tax (CGT)
Higher Tax Rates: The government might increase CGT rates to match income tax rates, meaning higher taxes for those with larger gains. This could significantly impact the amount you owe when selling assets like property or shares.
Fewer Reliefs: Reliefs like Business Asset Disposal Relief could be reduced or removed, making it more expensive to sell businesses. This means you might pay more tax on the profits from selling your business.
Lower Allowances: The amount you can earn tax-free from capital gains might be reduced further, increasing your overall tax liability.
Inheritance Tax (IHT)
Stricter Reliefs: There could be tougher rules on tax reliefs for business and agricultural assets, making it harder to pass on wealth without paying more tax. This could affect the value of what you leave to your heirs.
More Revenue: The government might look to increase IHT to raise more money, especially with rising property values and frozen tax-free allowances. This means your estate could face higher taxes.
Gifting Properties to Your Children
If you’re considering gifting property to your children, it’s important to act before any potential changes come into effect on October 30th. Here are some key points to keep in mind:
Inheritance Tax (IHT) Benefits: Gifting property can help reduce the value of your estate, potentially lowering the IHT your children might have to pay. If you survive for seven years after making the gift, it will be exempt from IHT.
Capital Gains Tax (CGT): If the property is not your main home, you might have to pay CGT on any increase in value since you bought it. However, if it’s your main residence, you could be exempt from CGT.
Living in the Property: If you continue to live in the property after gifting it, you must pay market rent to avoid it being considered part of your estate for IHT purposes.
No Mortgage: Ensure the property is free of any mortgage before gifting it, as this can complicate the process.
Legal Considerations: Make sure the transfer is properly documented and registered to avoid any future disputes or legal issues.
Act Now to Mitigate Changes
With the likelihood of tax rates increasing in the next budget, it’s crucial to act now. MDW Solicitors can help you navigate these changes and find ways to mitigate your tax liabilities. Here’s how we can assist:
Tax Planning: We can help you plan your finances to minimize the impact of higher CGT and IHT rates.
Gifting Strategies: We can advise on the best ways to gift property and other assets to your children to reduce your tax burden.
Relief Maximization: We can ensure you take full advantage of any available reliefs before they are potentially reduced or eliminated.
Legal Documentation: We can handle all the legal aspects of transferring property and other assets to ensure everything is done correctly and efficiently.
Why Choose MDW Solicitors for Lifetime Tax Planning?
Expertise and Experience: Our team has extensive experience in tax planning, ensuring you receive the best advice tailored to your unique situation.
Comprehensive Services: We offer a full range of services, from capital gains tax and inheritance tax planning to property gifting strategies and legal documentation.
Personalized Approach: We understand that every client’s needs are different. We provide personalized advice and solutions to help you achieve your financial goals.
Proactive Planning: With potential tax changes on the horizon, we help you take proactive steps to mitigate your tax liabilities and protect your wealth.
Peace of Mind: Our thorough and professional approach ensures that all legal aspects are handled correctly, giving you peace of mind.
About Debra Williamson
MDW Solicitors is led by Debra Williamson, TEP, a highly experienced solicitor who qualified in 1993. Debra specializes in advising clients on Trusts, Wills, Probate, Lifetime Tax Planning, and Lasting Powers of Attorney. She is a full member of The Society of Trusts and Estate Practitioners and has been representing clients in criminal courts for 29 years. Debra is known for her friendly, bespoke service and her commitment to helping clients understand and manage their legal affairs effectively.
Contact MDW Solicitors
To schedule a consultation with MDW Solicitors for your lifetime tax planning, please contact us at:
Phone: 01753 299466
Email: info@mdwsolicitors.com
Website: www.mdwsolicitors.com
We offer urgent appointments, which can be in person or virtual, to accommodate your needs.
Visit MDW Solicitors
Don’t wait until the changes are implemented. Contact MDW Solicitors today to discuss your options and take proactive steps to protect your wealth.
Opening Hours: Monday to Friday - 9:00am · 17:30pm
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