Tax {avoidance}
II'd been meaning to ask you something and now I've found your site that seems a good way to do it. Very impressed with the site especially your 'flying' picture.
My main question concerns the trusts that I think you're aware of. Basically I know I can't touch them but would I be able to add anything to a trust? As - if I have interest put in an ISA that would be a step in the right direction. But would it be possible (and would there be point) to transfer a share certificate into a trust. It would then be treated differently upon my demise I think.
Cheers, Bob
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Hi Bob,
Thanks for your question. Anything involving trusts, inheritance tax, and capital gains tax is a virtual minefield (particularly as both the Government and HMRC seem to systematically move the goal posts every few years). I would always advise consulting an inheritance tax law specialist if large sums (above the allowances) are involved.
The good news is that for a personal estate the first £325,000 is free from inheritance tax, so if you're estate is worth less than this you need not worry.
In the mean time whilst the shares are in your name you have an annual capital gains exemption of £12,000 (or £6,000 for trusts), so if the profit made on selling the shares is likely to be less than this, again you need not worry - there will be no tax to pay.
Hopefully , that has put your mind at rest but if the sums involved are greater than these allowances please send me a direct email to chedgy@TheEscapePlan.co.uk and I will try and help as much as I can.