LEGAL SERVICES FOR YOU 10 July 2024 | AshtonsLegal.co.ukPrivate Client Insights![]() Welcome to our 'Private Client Insights' newsletter! This issue offers updates on estate planning, mixed-domicile spouses and inheritance tax, and how to leave a lasting legacy. We also introduce you to a member of our team, Gemma Helsdon. Why cohabiting couples must consider estate planning Millions of couples across the UK are choosing to forego marriage and live as cohabiting couples. However, without proper estate planning, they could be putting their finances at risk. Unlike their married counterparts, unmarried couples have no automatic right to inherit from each other. However, with proper estate planning, you can ensure your cohabiting partner is properly provided for should you pass away. This article looks at some of the important estate planning matters all cohabiting couples should consider, including:
![]() International Love: Mixed Domicile Spouses and Inheritance Tax Following the twin hurdles of Brexit and Covid-19, at one point many of us could be forgiven for thinking that international travel, let alone relationships, were sadly a thing of the past. However, Parliament perhaps takes a longer view on such things, and a relatively recent (in inheritance tax terms) change to tax legislation on mixed domicile spouses (and civil partners) is worth examining, as it may affect more people than one might think. As is widely known, Section 18 of the Inheritance Tax Act 1984 (IHTA 1984) contains a total exemption from inheritance tax (IHT) for transfers (by Will or lifetime gift) between spouses and civil partners. However, this exemption is limited where a UK-domiciled person makes a transfer of value to a non-domiciled spouse or civil partner. It is important to note here that one can be both a resident in the United Kingdom while “non-domiciled”, domicile being based on more than just residency, and, at its simplest, the concept of domicile can relate as much to one’s country of origin as location. The reason for a limited spouse exemption is to avoid a potential loss of revenue when a UK-domiciled individual makes a gift to a non-UK-domiciled spouse. The UK-domiciled individual is liable to IHT on their worldwide assets. The spouse, however, only on assets that are in the UK, so once in their hands, they are excluded from property and outside the IHT net. The issue of domicile has become a “hot topic” of late, and is likely to be the subject of legislative change, whatever the government, so do keep this under review. Meet the team: Gemma Helsdon Gemma is a Senior Associate in our Norwich Lifetime Planning team. How long have you been at the firm? I joined Ashtons in September 2023. What are your specialisms? I support clients, their families, and their businesses in matters related to Wills, Estate Administrations, Inheritance Tax Planning, Powers of Attorney, Trusts, and lifetime and succession planning. ![]() Inheritance Tax: Could your Estate benefit from Business Relief? Business Relief is one of the most valuable reliefs available for reducing your Inheritance Tax liability. The relief can reduce the charge to Inheritance Tax by 50% and even 100% on business assets of unlimited value. This applies not only to those who are actively engaged in a business but also to those who simply hold shares in the right type of company. So, what type of business assets qualify for Business Relief?
![]() Leave a Lasting Legacy We are one of the most generous countries when it comes to charitable giving, with a strong tradition of volunteering and raising money for a good cause. Charities support our communities and play an important part in our society and lives. However, it is a little appreciated fact that many charities wouldn’t survive without gifts from Wills. These gifts are the largest single source of voluntary income to the charity sector. For example, at the RSPCA, over half of their work was funded by people who left gifts in their Will and at Cancer Research UK, one-third of their funding comes from such legacies. Despite the charity sector’s reliance on funding from gifts in Wills, the Gazette, in December 2020, stated that only 6% of people include charities in their Wills. Leaving money to charity is not just about compassion and generosity. It can also be a great tax-efficient way of making a donation to your favourite causes. As gifts to charities are exempt from Inheritance Tax, it is thus possible to lower your Inheritance Tax liability through charitable gifts. In addition, if 10 per cent or more of your estate is left to charity, then the Inheritance Tax rate lowers from 40% to 36%, reducing an estate’s liability to Inheritance Tax even further. Please remember that Ashtons Legal is available to assist you and your business with our full range of business, individual and injury law services including commercial and residential property, corporate advice, dispute resolution, family law, estate planning, personal injury and medical negligence. ![]() We Can Help YouFor specific advice for you, your family or your business, please get in touch with us by calling 0333 034 8469 or email enquiry@ashtonslegal.co.uk. To unsubscribe from this newsletter, please click the button below. To be removed from this newsletter or to update your subscription preference, please click on the links below. Ashtons Legal LLP is a limited liability partnership registered in England & Wales with number OC445631 whose registered office is at The Long Barn, Fornham Business Court, Bury St Edmunds, Suffolk, IP31 1SL. We are authorised and regulated by the Solicitors Regulation Authority (licensed body number 8003918). |