Wed, 22 Aug 2018
In recent years many people have invested in individual or portfolios of buy-to-let property.
The idea being that the property rents will more than cover costs and will give an extra stream of income now and in retirement.
The Government has recently made things a little more difficult for such investors by changing the taxation regime of rental income and adding a penal stamp duty charge on property purchases and transfers.
The issue that is not yet being discussed openly is the inheritance tax consequence of owning properties that are not considered the main residence of the investor.
The recent addition of a ‘residence nil rate band’ concession only applies to main residences passed directly to children or grandchildren, so that doesn’t help.
Gifting property to the family might seem sensible, but the loss of control and income together with the likelihood of capital gains taxes and possible stamp duty means this is not the best option.
So, what can the investor do?
It is possible, using existing legislation, to move a portfolio into a more inheritance tax-friendly environment without losing income or control and without falling foul of capital gains tax or stamp duty.
If you would like to know more about moving your portfolio into a more tax efficient environment, Kept Assets will be running short seminars in the Newbury area throughout September.
Can Kept Assets help you with your portfolio?
Register your interest in attending by email at firstname.lastname@example.org