Inheritance Tax Con By Chancellor

Tiggs_2

sloughflint wrote: »

Is this your job, Tiggs? You keep saying it's simple but to people like me and robledouk it's all been a very steep learning curve.

But the beauty going forward is that it IS simple.

Husbands and wives leave all assets to each other...DONT use the Nil Band. When 2nd dies you get 2 times the value of the nil band. That's it.

As Willman says above - i can see no reason why you would ever use a DWT (in 99.9% of cases)

If you already did DWT planning can you go back with a DOV and alter it to leave it all to the spouse and "reclaim" the allowance for the survivor to use in the future.....good question! I don't know, that's a legal one - I'm a financial product salesman so only comment on this issue from that background, not a legal one.

Tiggs_2

Was the dov put in place...does the DWT exist today?

home_alone

I am no expert but the so called experts on todays BBC2 lunch time show did not seem too enamoured by Darlings annoucements.

gary

EdInvestor

home_alone wrote: »

I am no expert but the so called experts on todays BBC2 lunch time show did not seem too enamoured by Darlings annoucements.gary

I'll bet they weren't. The whole IHT avoidance industry has virtually collapsed.Add on the damage that the CGT change will do to the investment bond market and it was a bit of a Black Tuesday for the industry.

Tiggs_2

EdInvestor wrote: »

I'll bet they weren't. The whole IHT avoidance industry has virtually collapsed.

errr.....no it hasn't. My company does nothing but IHT planning and i assure you we are very much still in business and on track for a very prosperous year end.

Any clients with IHT plans would have already used their nil bands through Will planning.....IHT planning STARTS at £600k. So there is no change - in fact its good news for us as we used to write Wills for clients for free...we dont need to bother anymore.

The only people who did need IHT planning and now dont are those widowers who have between 300-600k and can double up their allowance. I have about 4 clients in that nice position.

While the thought of a black Tuesday may warm your heart i'm afraid its still very rainbow coloured here.

localhero

Have you got any vacancies there Tiggs? lol

jem16

EdInvestor wrote: »

Add on the damage that the CGT change will do to the investment bond market and it was a bit of a Black Tuesday for the industry.

What damage would that be Ed?

Tiggs_2

jem16 wrote: »

What damage would that be Ed?

I think when ed said "virtually collapsed" she means virtual as in "not real"

The CGT rules will have almost no effect on the UT V bond market. There are 3 main reasons why someone uses a bond over a UT:

a) its going in trust
b) its more tax effecent
c) its worse for them but they are sold it anyway

The cgt change will have no impact on a) or c) and a slight impact on b)...and some of the b's will then become c's.

Tiggs_2

localhero wrote: »

Have you got any vacancies there Tiggs? lol

lol.....no.

jem16

Tiggs wrote: »

I think when ed said "virtually collapsed" she means virtual as in "not real"

The question was more "tongue in cheek" as I know how Ed thinks about Investment Bonds.

The CGT rules will have almost no effect on the UT V bond market. There are 3 main reasons why someone uses a bond over a UT:

a) its going in trust
b) its more tax effecent
c) its worse for them but they are sold it anyway

The cgt change will have no impact on a) or c) and a slight impact on b)...and some of the b's will then become c's.

So basically the only effect is for those few higher rate taxpayers who are still higher rate taxpayers when the bond is encashed and not the many who choose an investment bond as they are higher rate taxpayers who will be basic rate taxpayers later?