View more on these topics

Elderly face tax bill from Revenue review – STEP

A Government review of inheritance tax law may mean thousands of elderly home-owners and farmers will receive unexpected tax bills from April 2005 warns the Society of Trust and Estate Practitioners.

The impact of the review of pre-owned assets and gifts with reservation could lead to unforeseen income tax liabilities arising, says the STEP. The Revenue is planning to charge income tax on the rental value of property left in trust where a benefit is retained.

Society of Trust and Estate Practitioners spokesman Robert Ham says: “Thousands of home-owners have legally placed their properties in trust to pass their estate intact to their families. But since the new tax will apply to existing arrangements, homeowners will be charged income tax on a deemed benefit in kind unless they pay the full market rent on their homes. These schemes were particularly popular with the elderly, who will now face an unexpected tax bill.”

Recommended

Aifa warns FSA over timing of EU directives

Aifa has warned that the FSA needs to be more concerned with the timing of the many upcoming EU directives rather than the precise wording of each document, saying taking on so many directives at once will be costly and confusing. The warning comes as Aifa responds to the FSA&#39s consultation on the implementation of […]

Gartmore widens fund of funds

Gartmore has altered its fund of funds, allowing it to invest in funds managed by other investment houses. The arrival of Bambos Hambi and the rest of the multi-manager team in November last year prompted the decision to rename the existing fund the Gartmore Portfolio: balanced strategy fund and change its remit. The new fund […]

B&B IFA profits plummet

Bradford & Bingley&#39s preliminary results for the year ending December 31 show a 63 per cent drop in profits in its IFA division plummeting to £10.4m from £28m in 2002. Revenues of B&B&#39s IFA division – including Charcol, Charcol Holden Meehan, Charcol Aitchison & Colegrave and The MarketPlace – fell by 6 per cent to […]

Buy-to-let borrowing hit by fall in rent yields

Buy-to-let borrowers are finding it harder to secure loans after rental yields fell last year, according to IFA Savills Private Finance. CML figures show that the buy-to-let market continued to rise in the second half of 2003 but SPF director Simon Jones says that some lenders will not lend on properties unless rental income exceeds […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment