Long Term Tax Planning With the Investment Property
Essential Inheritance Tax Planning with Churchill Tax has a relentless focus. It tells you how to pass your property business on to your successors in the most tax effective manner.
It is designed to give investment property owners clarity on the challenges they face and the strategies they could and should consider adopting to mitigate inheritance tax.
Whether you have a single investment property or several hundred, once you have consulted with us you will understand that the only limits to the depth and reach of your inheritance tax planning, and the resulting tax savings, are your ambitions.
There are two million landlords in the UK. Between them they own 4.9 million properties with an estimated value of £989 billion. 89% of owners are individuals. Almost all of those owners and are potentially exposed to inheritance tax. That represents a lot of inheritance tax. Governments need you to pay that tax!
In the real world the blunt fact is that a stopwatch starts ticking on the day after you die. It stops just over six months later.
That is the day your family must pay the inheritance tax due on your estate. If your family needs to obtain probate, and they will where your assets include investment property, tax will be due at the time of the probate application itself.
The crucial issue for the family is therefore how on earth to pay the tax?
Inheritance tax on property can be paid by instalments over several years but most people feel that is a just a bit too much like taking out yet another mortgage in practice. Where the value of your estate is concentrated in property the result is often hasty sales to obtain the necessary funds. At a difficult emotional time, the family is also faced with impossible decisions. It is not quite the legacy they or you might have anticipated. It is not just that the estate passing to the family is significantly less than everyone thought as a consequence of the tax. It is the very practical issue of selling the family jewels or taking out loans to pay for the tax.
Most property owners will not manage the exposure to inheritance tax in their lifetime and so those who inherit their properties will suffer tax of up to 40% on the value of those properties. That means that the chance of the property business surviving intact is remote. The business will be broken up to settle the tax within just over six months of death. That is not much of a legacy!
You would most certainly need to know;
How to pass your property business on to your successors in the most tax effective manner.
Why property owners are notoriously bad at protecting their property business from inheritance tax.
Why you may be stuck in a rut, endlessly poring over possibilities but never resolving anything which can be frustrating.
To have knowledge of highly practical series of steps to get things moving and puts you back in the same position of control as you were when you first started investing in property.
How to break free from circular thinking and secure the future of your property business.