Tax Planning

Despite the efforts of HMRC, there is still a possibility to use your home for inheritance tax planning. One option for this is to use an equity release scheme. This can be in the form of a loan or a sale and lease back. However, there are advantages and disadvantages of each. Having the largest part of your wealth tied up in your home is not uncommon these days, even with house prices having remained flat over the last few years.


Circumstances may mean that the co-owner tax break isn’t feasible for some people and they may look at equity release (ER) schemes. One version of ER involves borrowing against your property to release cash, this debt can then be knocked off the value of your estate when calculating IHT. Plus, unlike a house, you spend or give away the money you’ve borrowed which, of course, reduces the value of your estate for inheritance tax purposes.

For more information and advice it is always better to contract a tax consultant before making any decisions. Contact KVS Accountants for all your tax queries. KVS acts as tax consultants in London, Fulham, Clapham Common, Balham, Shepherds Bush, Kensington, Notting Hill and Holland Park

 

Tags: , , , , , , ,