Tax Avoidance

[silverfoxcc]

Well, Tues Euro here again , got me thinking how i can minimise paying HMG a lot of it ( i am always the pessimist and wont live the 7 yr cut off )

Set up trust funds for the two grandkids

Spend a lot of time at Ascot trying to win more 'Honest Mr taxman 250k and not one winner' ( in reality its in a tin at the bottom of my sons garden)

50k of PB for the nippers
Pay off schools fees
Buy a lot of Railwayana esp loco nameplates prices go up and down but cost the at scrap value!!!!

could i but a house megabucks in a company name and registered it as head office... I mean does does Wh Smith pay death duties on each shop eery time a director dies?????

gold bars

Lots a numberplates on retention and sell the off as and when

overseas investments or are these chased
Any other legal wheezes?

How many of these are near the knuckle for tax evasion for the descendents

It would be nice to know ...just in case....lol

[Mr Pointy]

Are you trying to reduce tax when you earn it or when you invest it?

[Blue Mk8 Golf R]

Invest in Aim shares after two years they are exempt of IHT
It helped with my Mother's estate

[WayOutWest]

The legality is dubious but some kind of treasure hunt where you hide 1 oz Britannias in the garden and leave a cryptic treasure map to make them work for it. Probably best to plan ahead and accumulate the coins over a long period of time though, in small handfuls each purchase.
Also, maybe buy a small wood/forest.

[Rob_125]

A friend I know had very frugle parents. The parents withdrew cash each month when they new their time was near final 3 or 4 years at a guess and didn't even spend their pension which was drawn cash. I believe approximately 140k cash was found stashed around the house in various biscuit tins, behind the toilet, under the mattress etc. It was split 3 ways between the siblings. The friend never cashed the moneys, just lived off it for ~2 years.

Only problem was that as the gent had built the house soley himself, so the siblings we unsure if they had missed any secret hidey holes!

The last remaining parent wasn't stupid, at a guess knew what they were doing, can't really knock them for it!

I does strike me as bizarre the parents didn't hand out the cash earlier in their lives to enjoy the money with their children. I guess it's a generational thing...instead of having the heating on they'd sit in the kitchen with the gas cooker churning out heat.

Edited by Rob_125 on Tuesday 8th August 16:15

[simon_harris]

It's only £22m tonight - i reckon I could get that spent in less than 7 years without trying too hard

[trickywoo]

Probably need to move to Jersey or similar but engaging the services of a tax professional can help.

Nobody on here is going to point you at something to save loads of tax because whatever you do will need to be set up to your own circumstances.

[caziques]

A friend of mine's father spent a lifetime completing a full set of Maundy money, which would cost about 100,000 pounds to replicate. The small box containing it all was simply never assessed when he died at 94, as my friend just removed it.

For myself, I moved to New Zealand, death duties are set at 0%.

[shambolic]

Take kids to vegas. Withdraw a million to bet with. Give 500k to each kid give it take a few grand to have fun. They convert chips back to money. You lost all yours. They both had winning streaks.
Would HMRC investigate? Or even know?

[Eric Mc]

shambolic said:

Take kids to vegas. Withdraw a million to bet with. Give 500k to each kid give it take a few grand to have fun. They convert chips back to money. You lost all yours. They both had winning streaks.
Would HMRC investigate? Or even know?

That's not tax avoidance

That's tax fraud.

[Mogul]

Most of what’s been discussed above is tax evasion (sketchy) rather than tax avoidance (sporting).

Don’t forget that the onus is on your executor(s) / perso al representative(s) to make the return on behalf of your estate and they would have to bear the consequences if there are issues and HMRC may have up to 20 years to investigate…

Moving abroad sounds like a good ruse, but it isn’t a cake walk…

https://hanne.co.uk/uk-inheritance-tax-and-domicil...

[carbonblack]

Eric Mc said:

That's not tax avoidance

That's tax fraud.

Out of curiosity - what if there was a slight spin on this, where one kid places £500k on red and the other £500k on black, then you place £27k on zero to cover it.

One child nets £500k profit - and child 2 has lost £500k and you have lost £27k. Would this constitute a legitimate angle, as the funds were actually bet/lost/won?

[Eric Mc]

No

[Hill92]

Mogul said:

Most of what’s been discussed above is tax evasion (sketchy) rather than tax avoidance (sporting).

Don’t forget that the onus is on your executor(s) / perso al representative(s) to make the return on behalf of your estate and they would have to bear the consequences if there are issues and HMRC may have up to 20 years to investigate…

Moving abroad sounds like a good ruse, but it isn’t a cake walk…

https://hanne.co.uk/uk-inheritance-tax-and-domicil...

Tax avoidance is sketchy and generally inadvisable, not least for the reason you highlight.

There is a distinction between tax mitigation and tax avoidance which is often overlooked. Usually deliberately so by promoters of tax avoidance schemes trying to appear legitimate.

Tax mitigation is acceptable practice to naturally reduce tax bills in ways intended by Parliament (ISAs, IHT succession planning, capital gains allowances etc). This would be sporting.

Whereas tax avoidance is seeking to aggressively use loopholes and/or artificial structures in an abusive way to gain a tax advantage that was not intended by Parliament. Such schemes are vulnerable to challenge under the General Anti-Abuse Rule and other powers.

Tax evasion is just plain illegal.

[deckster]

shambolic said:

Take kids to vegas. Withdraw a million to bet with. Give 500k to each kid give it take a few grand to have fun. They convert chips back to money. You lost all yours. They both had winning streaks.
Would HMRC investigate? Or even know?

To a large extent it depends on what you did with it. If you deposited the cash straight into an account in the Caymans there's a good chance they wouldn't notice. As soon as you brought a large sum into the UK and opened a bank account, or tried to spend the cash, they might start to ask questions.

[shambolic]

It was only a hypothesis as I’ve no kids to leave anything to. We are just going to spend it all!

[globaltraveller]

Eric Mc said:

shambolic said:

Take kids to vegas. Withdraw a million to bet with. Give 500k to each kid give it take a few grand to have fun. They convert chips back to money. You lost all yours. They both had winning streaks.
Would HMRC investigate? Or even know?

That's not tax avoidance

That's tax fraud.

Is it? You can give and receive gifts tax free, meaning you don’t even need the Vegas charade?

And it’s not like gambling losses are tax deductible.

Edit - sorry I missed the inheritance tax piece. I will probably move into physical cash as I enter my dotage and bury a safe in the garden.

Edited by globaltraveller on Wednesday 9th August 18:11

[BobToc]

Yeah, I’m not sure I see what the vegas piece adds to this. It’s just a gift subject to the 7 year threshold (and you can buy life insurance to protect against an unexpectedly early demise).

[shambolic]

If you knew you only had months to live and did it?

[BoRED S2upid]

Just give it all away. £3000 to each child and grandchild plus treats every single year plus you can pay for weddings and holidays. How much do you want to get rid of?