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Complicated IHT/CGT/Property question

I'm not asking for definitive answers here, we're not aiming to change anything in the immediate future, but some guidance on good directions to move would be welcome.

We lived/worked abroad for two periods, 1974/77 and 1980/87, during the second period abroad we bought a flat in North London which we lived in while home on leave (two months/year, not enough to stop us being non-resident).

Since we came home in 1980 the flat has been let for most of the time but for a number of periods (several months at a time) our children have lived in the flat. We have had a house (well, a series of houses) which has been our main residence since 1980.

Currently our daughter is living in the flat and, as she is now working, is paying us rent, presently fairly nominal.

Our children both own a small percentage of our main residence as we used their part of an inheritance from my mother when she died (as well as our part of the inheritance) to buy our current house.

I'm 57, my wife is 50 so we're not retiring immediately but it isn't that far away.

What sort of things should we be looking at to minimise IHT and/or CGT? We would quite like to realise some capital from the flat at some point and it's quite possible that our daughter can get an advantageous loan/mortgage from her employment. What are the implications of selling the flat to her?

What sort of professional should we be talking to about all this - an accountant, a solicitor or who? We obviously need someone who knows all the ins and outs, how does one find an expert with no axe to grind?

Reply to
usenet
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You need a solicitor or accountant who specialises in IHT planning. Take a look here to find solicitors who specialise. Obviously you will have to pay but since the tax is levied by the Government I don't understand you comment regarding axes.

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Reply to
Peter Crosland

However, having gone to the above web site I haven't had much luck finding what I want. The only remotely related 'area of law' seems to be "Financial and Investment Services" so I tried that and the only hit was a very large London company which doesn't really seem to be what I'm after.

I also tried searching for 'inheritance' in the FAQ and got no hits at all.

Reply to
usenet

i.e. a member of STEP, an organisation devoted to the inflation of members' fees because they allegedly specialise in inheritance tax. As a couple you might find the info here on discretionary trust wills interesting.

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The Norwich Union web site has downloadable brochures on the different types of trust and, although they're linked to insurance products, it might give you some ideas

Reply to
stuart noble

I did a search for Wills and Probate specialists in Chelmsford, and it came up with one firm in Bournemouth and one in Leeds!

Why not ask your bank manager if he can recommend someone?

Martin.

Reply to
Martin

Bank manager have more vested interests than anyone! If the site has provided does not help then look in Yellow Pages. I have just done so and found several firms that offer the services. I would not worry about too much about the hard sell from solicitors. Of course a personal recommendation is even better.

Reply to
Peter Crosland

I would have said you are already in the right place, asking questions in uk.finance, uk.legal.moderated, uk.business.accountancy and using Google Groups search to get a "feel" for the subject. When you are paying a solicitor £150ph you don't want to be saying "Run that one past me again?" too often :0)

If you are familiar with Excel, start building up a financial "model" of your situation. Get some controls, spinners etc and try to build into it all the things that *might* happen:

house prices go up VS house prices go down you die before your children VS they die before you

...all the things which will have dramatic effects if they do or do not happen. By spinning the spinners you can go through *all* the possible combinations to come up with a foolproof "cunning plan".

*Then* go to your solicitor. I think most small/medium sized solicitors are able to cope with these sorts of questions, they usually have specialiasts who breeze in and out doing (perhaps) 1/2 day a week in 4 or 5 different practices.
Reply to
Troy Steadman

Hmm, is there really such a thing as "your bank manager" nowadays? In my case [s]he's in North London and I live in Suffolk anyway.

Reply to
usenet

This is a joke, I presume.

Rob Graham

Reply to
Robin Graham

If you like!

Is it /that/ silly? What would you recommend?

Personally I would probably check out the websites of likely-looking local solicitors and accountants first and see if they had the necessary specialists, but surely a bank manager would have some experience in customers' financial planning, and might have an idea of who was any good?

Obviously he might recommend the bank :-).

Martin.

Reply to
Martin

In message , Robin Graham writes

I hope so!

In my direct, recent and personal experience Accountants & Solicitors generally do NOT have the knowledge required. I think it would be better to get a properly qualified IFA AND a solicitor acting together. I speak as having recently come across a deceased accountants estate who had appointed his partner and a solicitor as execs that didn't use the Nil Rate Band and the execs hadn't spotted it and there was only 4 months to go to get a Deed of Variation done.

The IFA should have the extra qualification G10 and be actively advising clients on IHT on a fee basis and the Solicitor needs to know who Mr Tweedy is at the CTO. If he hasn't heard of him, then go elsewhere.

Also, ask both if they know about the change in attitude on IHT that the IR introduced in November and March.,

STEP membership (as somebody else has pointed out) would be a good thing.

There are still solicitors out there putting half the house into trusts and completely missing the fact that the surviving spouse has an interest in possession and will be taxed on that half.

What ever you do DONT go & ask anybody at a bank to help or any will writing company.

Reply to
john boyle

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