QNUPS-Inheritance Tax Planning
Discussion
I have spent some considerable time looking at Inheritance Tax Planning, from the creating of Wills and Discretionary Trusts, to taking out Whole Life Insurance cover. Whilst these are still under consideration, during some online research I came across QNUPS, the same which allows for assets, such as BTL properties to be placed within QNUPS.
What are the pros and cons of QNUPS
What are the pros and cons of QNUPS
I'm fairly certain the BTLs cannot go in, they have to be qualifying UK pension assets and BTLs are excluded from that criteria.
As has been said you need very specialist specific advice around these, and that will cost. Unless you have very significant assets and ability to pay may not be worth while.
In any case normal pensions are effectively free of IHT now in any case, completely up until you draw on them and then most likely taxable at beneficiaries effective income tax rate going forward.
As has been said you need very specialist specific advice around these, and that will cost. Unless you have very significant assets and ability to pay may not be worth while.
In any case normal pensions are effectively free of IHT now in any case, completely up until you draw on them and then most likely taxable at beneficiaries effective income tax rate going forward.
Putting B2L into QNUPS is a similar process to incorporating by placing them into a Ltd company. The property has to be sold at market value which could have capital gains tax implications as well as possibly, stamp duty costs when the property is bought through the company. Placing an existing property into QNUPS is nigh on impossible now, I haven't heard of it happening for a long time.
Ginge R said:
Putting B2L into QNUPS is a similar process to incorporating by placing them into a Ltd company. The property has to be sold at market value which could have capital gains tax implications as well as possibly, stamp duty costs when the property is bought through the company. Placing an existing property into QNUPS is nigh on impossible now, I haven't heard of it happening for a long time.
Incorporating is something else I am also considering, not just for the BTLs, but for a "holiday let" I am in the process of purchasing.I understand from a recent article I read in a Landlords news article, that following a recent Tribunal case, that where a landlord transfers their portfolio into a limited company, then the landlord makes a disposal that is subject to CGT. However following the above case, where in summarising the Tribunal forced HMRC to accept that a property business may qualify, it may be possible to defer CGT by making an application under what is called "incorporation relief" under section 162 TGGA 1992. This article (which I will scan an email to you) then stated that the most recent HMRC manual states that for a property business to be eligible for the relief, it must be one in which the transferor has been "active".
Can't believe the tax advantages on holiday lets compared to BTLs,
Depends on the value of the property, SDLT being from 0% to 12%. Local solicitor/landlord I know has recently incorporated all his BTLs into separate Limited companies. If a landlord does not require immediate income, then being incorporated the rental profits are only taxed at 20%, with each shareholder obtaining £5k tax free, therefore only taxed when additional income is taken. Also any interest on loans is still tax allowable.
I must be getting confused. Apologies.
The higher rate SDLT I'm alluding to is 3% to 15%. The reason I ask is that for CGT to be liable I assume some sort of disposal must take place. Deferred or not, makes no difference.
Post disposal, a repurchase has to take place by the relevant scheme. At this point....does higher rate SDLT kick in?
...or am I way off the mark here?
The higher rate SDLT I'm alluding to is 3% to 15%. The reason I ask is that for CGT to be liable I assume some sort of disposal must take place. Deferred or not, makes no difference.
Post disposal, a repurchase has to take place by the relevant scheme. At this point....does higher rate SDLT kick in?
...or am I way off the mark here?
Jockman said:
I must be getting confused. Apologies.
The higher rate SDLT I'm alluding to is 3% to 15%. The reason I ask is that for CGT to be liable I assume some sort of disposal must take place. Deferred or not, makes no difference.
Post disposal, a repurchase has to take place by the relevant scheme. At this point....does higher rate SDLT kick in?
...or am I way off the mark here?
For rental properties SDLT is 3% to 15%, my mistake sorry.The higher rate SDLT I'm alluding to is 3% to 15%. The reason I ask is that for CGT to be liable I assume some sort of disposal must take place. Deferred or not, makes no difference.
Post disposal, a repurchase has to take place by the relevant scheme. At this point....does higher rate SDLT kick in?
...or am I way off the mark here?
Wings said:
Incorporating is something else I am also considering, not just for the BTLs, but for a "holiday let" I am in the process of purchasing.
I understand from a recent article I read in a Landlords news article, that following a recent Tribunal case, that where a landlord transfers their portfolio into a limited company, then the landlord makes a disposal that is subject to CGT. However following the above case, where in summarising the Tribunal forced HMRC to accept that a property business may qualify, it may be possible to defer CGT by making an application under what is called "incorporation relief" under section 162 TGGA 1992. This article (which I will scan an email to you) then stated that the most recent HMRC manual states that for a property business to be eligible for the relief, it must be one in which the transferor has been "active".
Can't believe the tax advantages on holiday lets compared to BTLs,
.. look forward to it. This case?I understand from a recent article I read in a Landlords news article, that following a recent Tribunal case, that where a landlord transfers their portfolio into a limited company, then the landlord makes a disposal that is subject to CGT. However following the above case, where in summarising the Tribunal forced HMRC to accept that a property business may qualify, it may be possible to defer CGT by making an application under what is called "incorporation relief" under section 162 TGGA 1992. This article (which I will scan an email to you) then stated that the most recent HMRC manual states that for a property business to be eligible for the relief, it must be one in which the transferor has been "active".
Can't believe the tax advantages on holiday lets compared to BTLs,
http://www.taxjournal.com/tj/articles/incorporatio...
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