We all know the standard ways in which a saving on Stamp Duty can be made; be a first-time buyer, or buy a property beneath the threshold of £125,000
But that’s a narrow and fairly prescriptive list – unless you are already in the process of buying, happen to be a first-time buyer or are buying in one of the cheaper areas of the U.K.
So is there any other way in which savings can be made on this unwieldy, complex and often punitive tax?
And….is there any point reading this if you’ve already completed and paid?!?!?
The good news is yes!
The better news is that one of the most common methods is applicable as a bespoke solution to a wide range of properties, is not dependent on your buyer status or the area of the country in which you buy and doesn’t carry a time limit. It’s known as ‘Mixed-Use Relief’, and it’s applicable more often than you might think.
Even better news….we can reclaim going back 6 years with no win/ no fee!
Income Planning is one of our tactics to protect the asset that often pays for all the others, i.e. a companies’ trading profit. This is to deal with uncertainty; HMRC are always challenging solutions.
How to structure income so that in the worst case there can be no penalties?
The “Reasonable Excuse Defence”. Everything we do is Counsel led. All advice is personal, i.e. a bespoke solution for both the individual and the trading entity.
Owners of appreciating assets, particularly property portfolios, have sought asset protection solutions against IHT for decades; there is an efficient and timely solution.
Using statutory reliefs (i.e. where no taxes apply) we can seamlessly transfer the ownership of the asset to a New Company in return for shares in the New Company.
The process can stop there – or continue with the transfer of ownership of the shares to a Trust. This lies outside the landlords estate and is therefore exempt from IHT.