Government seeks views on inheritance tax changes for trusts
The government has opened a consultation on aspects of the application of the £1m allowance for property settled into trust qualifying for 100% agricultural property relief or business property relief. What is this looking at and how do you take part?
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Accounting for VAT if there is no cash payment
Your business has submitted repayment returns for the last two quarters and you are concerned that you might have underpaid output tax on some supplies where no money has changed hands. Are your concerns justified?
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Treatment of distributions under review
The government has launched a consultation on modernising the tax treatment of distributions and repayments of capital by companies. The proposals could affect the distinction between dividends taxed as income and capital payments subject to CGT. What changes are being considered?
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Tax relief on equipment you haven’t paid for (yet)
The timing of tax relief for purchases of equipment isn’t straightforward when payments are delayed or goods are purchased through hire purchase (HP) agreements. How can you use these rules to your advantage and get tax relief before you’ve paid the final invoice?
As announced at the 2024 Autumn Budget, a new £1m allowance will apply to the combined value of property that qualifies for 100% business property relief or agricultural property relief from inheritance tax. The value of the estate exceeding the allowance will be subject to relief at a lower rate of 50%. A consultation has now been launched which outlines how the £1m allowance will operate in respect of both existing trusts and trusts yet to be formed. As with any major change to the tax rules involving trusts, the transition is complicated, and the consultation asks whether the rules on application are sufficiently clear, as well as requesting views on other matters. Have your say here by 23 April 2025.
The consultation also revealed key information for individuals - it is confirmed that the £1m allowance refreshes every seven years (as the nil rate band does), and transfers made prior to 30 October 2024 (Budget Day) will not use up any of the £1m allowance.
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