It is not possible to reduce inheritance tax that you have benefited from after the event. Inheritance tax planning has to be done before the death of the asset owner
Will you estate not increase with debt you have increased - ie say you took extra cash by refinancing the property unless you can spend all the cash quicker !!
How about using a group structure, put the kids as share holders. The company still runs after your death and the kids are still owners of the company so the tax man can't get to it? Am I wrong?
More to it but a tax structure is possible for sure. Please get tax advice before you do anything. The price of a tax consult is much less than the cost of getting it wrong, I have seen regrets by not speaking to someone. Retrospective tax planning does not exist sadly
Amazing IHT content. I learned so much. Just one thing. Is the growth share system only for minors or can it be for mature 30 something daughters. And finally should we not have been taught the rudiments of wills and tax in school instead of the weekly perfecting of the Victoria sandwich cake 🍰🤷🏼♀️
Great video Simon. Interested in growth shares but I thought a share needs an owner. So who owns the growth share? If me than sure an asset so IHT applicable? or is there a need for a trust of sorts to own it? Or is the child (mine are adults) owning the growth shares? If so, how would the asset value growth be protected from divorce (child) for example? thanks again.
Hi Phil, when thinking about growth shares and putting those in place properly I would make sure that you get a specialist to discuss your specific situation. Please do be careful of reading forums such as TH-cam or Facebook to get answers which may cost you in the future
Could you capital raise off the company assets and invest the proceeds into say a farm as it would qualify for Agricultural Property Relief and would therefore be free of iht
Farmland may not get full IHT relief, but, yes it would help to reduce the tax. Not sure how much income you could generate but worth considering for sure
Hi Simon, what if there is a directors' loan to the Ltd company? If the directors die, then how would that be treated? Back to their estate and out of the Ltd?
Great content. How would you do this if you had a couple of properties outside of a Ltd company? I know one strategy you mentioned is Leveraging the mortgage again to release equity, reduce your IHT and investing that money in a pension. Could you also incorporate the property and rebase it. Then use the director loan to take some of that money out. What strategy would you use in this case? Thanks. I am not at that stage but planning ahead.
Good points. I am not sure you will find the answers you want to a veritable and complex subject matter on a TH-cam thread. You need to have many conversations with all sorts of professionals to make a longer term financial plan that works for you and the family
@@UK-Property-Tax-Accountants thank you for taking the time to respond. That's a good answer and true as it is very complex and definitely a tax specialist that only specialises in this area can recommend. Keep the videos coming, very informative.
Hi can I make a meeting just to get questions answered on a smart company for my brother please basically company is worth 0 due to liability and want to make a structure that can work. I have seen videos by property 118 also that have this structure but I can see from reviews you have a good reputation so ideally value your advice more.
Hi Rosie’s The best way to get a tax consultation with us is to use the code TH-cam25 to get a 25% discount You can book a session with us using the below URL optimiseaccountantsltd.as.me/optimiseaccountantstaxconsultation You only need a 30 minute tax consultation to talk history Warm regards
Hi Simon, my accountant suggested to split into a, b and c shares. Give the most valuable shares to our kid by putting in place a Declaration of Trust. Is this something you have done? What are your thoughts?
My question is what if you want to benefit yourself from the capital growth let’s say in 5-7 years (im still young 25) by doing this does it mean I can’t benefit from the B shares in 5-7 years if the property goes up by £40k ?
There will be an impact for sure if you use different share classes. It is with getting a tax consult to discuss the implication of whatever structure you use
Optimise - UK Property Tax Specialists impact in what way would you mind expanding I’m the one suggesting this to my accountant as he never suggested this to me
Let’s say i bought a property for 100k and gave away all future growth to the B class shares And in 5 years it went to 140k and I’m still alive Can I enjoy this 40k increase myself? Even though I’ve gave away to B class shares (but I don’t have any kids yet, and even if I did by then they’d be 4/5 years old only)
It might be worth discussing this with them first and if you are not satisfied then consider moving Accountants but please do give them an opportunity to discuss your situation
Thank-you for this great video. I am attempting to put in place a growth share structure but banks don’t seem to like shareholders under 18, have you run into this issue and and do you have any suggestions? Also is there any issue with giving the growth share differential dividend rights and simply not paying that dividend until they are of age? Thank-you very much!
Many clients have the same issue where they use a mortgage. You can give a different share class and wait until they are free of enough to give the dividends.
@@UK-Property-Tax-Accountants thanks for that, it is the business banking account I am struggling to get, any suggestion of banks that would accept minor shareholders? Thanks!
Bank accounts it’s not the issue. The issue is around mortgages and loans from the banks, you really do need to get a mortgage broker to help you with this subject
Optimise Accountants Thanks can it be given at less than 13 years? As per the video- growth shares is only advisable for property company and not trade company as can roll over
New ways to minimise IHT th-cam.com/video/E8mU5AsgmQw/w-d-xo.html
Optimise - UK Property Tax Specialists This link says that it is private.
Thanks again for the advice you share.
You are welcome 🙏
Thanks Simon, this has provided much food for thought. Definitely far more useful content than other resources out there! 👍
Thank you Samuel for the kind words
I always feel it is a lot more beneficial for me and for the listener to make the content useful and practical
How do my sister and I limit IHT on an inheritance I’ve we have been left (possibly 6/7 00,000)
It is not possible to reduce inheritance tax that you have benefited from after the event. Inheritance tax planning has to be done before the death of the asset owner
Will you estate not increase with debt you have increased - ie say you took extra cash by refinancing the property unless you can spend all the cash quicker !!
The spending is an important aspect of this strategy
How about using a group structure, put the kids as share holders. The company still runs after your death and the kids are still owners of the company so the tax man can't get to it? Am I wrong?
More to it but a tax structure is possible for sure. Please get tax advice before you do anything. The price of a tax consult is much less than the cost of getting it wrong, I have seen regrets by not speaking to someone. Retrospective tax planning does not exist sadly
Great content thanks
Thank you 🙏 very welcome
Amazing IHT content. I learned so much. Just one thing. Is the growth share system only for minors or can it be for mature 30 something daughters. And finally should we not have been taught the rudiments of wills and tax in school instead of the weekly perfecting of the Victoria sandwich cake 🍰🤷🏼♀️
I do like Victorian Sponge cake though 😂
Growth shares may be used for any age
Great video! Are these changes you can make say, 10 years into a property business? or would you advise this sort of structure from day 1?
It is always harder after the event to make significant changes. My belief most lose out by not restructuring when they could
Very useful
Thank you for your kind comments
Great video Simon. Interested in growth shares but I thought a share needs an owner. So who owns the growth share? If me than sure an asset so IHT applicable? or is there a need for a trust of sorts to own it? Or is the child (mine are adults) owning the growth shares? If so, how would the asset value growth be protected from divorce (child) for example? thanks again.
Hi Phil, when thinking about growth shares and putting those in place properly I would make sure that you get a specialist to discuss your specific situation. Please do be careful of reading forums such as TH-cam or Facebook to get answers which may cost you in the future
Could you capital raise off the company assets and invest the proceeds into say a farm as it would qualify for Agricultural Property Relief and would therefore be free of iht
Farmland may not get full IHT relief, but, yes it would help to reduce the tax. Not sure how much income you could generate but worth considering for sure
Hi Simon, what if there is a directors' loan to the Ltd company? If the directors die, then how would that be treated? Back to their estate and out of the Ltd?
Depends on how the loan agreement and company articles have been written
Great content. How would you do this if you had a couple of properties outside of a Ltd company? I know one strategy you mentioned is Leveraging the mortgage again to release equity, reduce your IHT and investing that money in a pension.
Could you also incorporate the property and rebase it. Then use the director loan to take some of that money out. What strategy would you use in this case? Thanks. I am not at that stage but planning ahead.
Good points. I am not sure you will find the answers you want to a veritable and complex subject matter on a TH-cam thread. You need to have many conversations with all sorts of professionals to make a longer term financial plan that works for you and the family
@@UK-Property-Tax-Accountants thank you for taking the time to respond. That's a good answer and true as it is very complex and definitely a tax specialist that only specialises in this area can recommend. Keep the videos coming, very informative.
You are very welcome. Good luck to you 😀👍
Brilliant
Would it be possible to refinance a property in my own name to avoid IHT or is this option for a limited co.
When's the best time to call you Simon ?
You can refinance mortgages in a company or in your own name to deuce IHT if you spend the cash
You can book calls with us using the URL optimiseaccountantsltd.as.me/optimiseaccountantstaxconsultation
Please use the code TH-cam20 to get a 20% discount
The growth of freezer share Isit in a trust and will it not get challenged by hmr
HMRC mate always challenge. However, if it is written into law then the chances of success is Nil.
Hi can I make a meeting just to get questions answered on a smart company for my brother please basically company is worth 0 due to liability and want to make a structure that can work. I have seen videos by property 118 also that have this structure but I can see from reviews you have a good reputation so ideally value your advice more.
Hi Rosie’s
The best way to get a tax consultation with us is to use the code TH-cam25 to get a 25% discount
You can book a session with us using the below URL
optimiseaccountantsltd.as.me/optimiseaccountantstaxconsultation
You only need a 30 minute tax consultation to talk history
Warm regards
Hi Simon, my accountant suggested to split into a, b and c shares. Give the most valuable shares to our kid by putting in place a Declaration of Trust. Is this something you have done? What are your thoughts?
Sounds a sensible approach
I got iht problem you may help me
My question is what if you want to benefit yourself from the capital growth let’s say in 5-7 years (im still young 25) by doing this does it mean I can’t benefit from the B shares in 5-7 years if the property goes up by £40k ?
Let’s say I want to sell a property in 5 years this won’t effect me from enjoying the profits will it?
There will be an impact for sure if you use different share classes. It is with getting a tax consult to discuss the implication of whatever structure you use
Optimise - UK Property Tax Specialists impact in what way would you mind expanding
I’m the one suggesting this to my accountant as he never suggested this to me
Let’s say i bought a property for 100k and gave away all future growth to the B class shares
And in 5 years it went to 140k and I’m still alive
Can I enjoy this 40k increase myself? Even though I’ve gave away to B class shares (but I don’t have any kids yet, and even if I did by then they’d be 4/5 years old only)
It might be worth discussing this with them first and if you are not satisfied then consider moving Accountants but please do give them an opportunity to discuss your situation
Thank-you for this great video. I am attempting to put in place a growth share structure but banks don’t seem to like shareholders under 18, have you run into this issue and and do you have any suggestions?
Also is there any issue with giving the growth share differential dividend rights and simply not paying that dividend until they are of age?
Thank-you very much!
Many clients have the same issue where they use a mortgage.
You can give a different share class and wait until they are free of enough to give the dividends.
@@UK-Property-Tax-Accountants thanks for that, it is the business banking account I am struggling to get, any suggestion of banks that would accept minor shareholders? Thanks!
Bank accounts it’s not the issue. The issue is around mortgages and loans from the banks, you really do need to get a mortgage broker to help you with this subject
what age can child be given growth shares and is it easy to change growth shares to normal shares when child older
Shares can be given but dividends cannot have earnings as it will be deemed to be in the hands of the parents
Optimise Accountants
Thanks
can it be given at less than 13 years?
As per the video- growth shares is only advisable for property company and not trade company as can roll over
Sadly not as rules apply to trade and investments for earnings