Business investments & inheritance tax
Discussion
If an elderly relative were to invest in my company, say £10000 for a minimal share, what would happen upon the passing of the relative?
Could they leave that share to myself, and what kind of tax would it have? Currently the will is set up to distribute equally to the 2 remaining children (of which 1 is my mother) - the relative is still healthy so is not a 'last ditch' attempt at avoiding IT either.
Matt
Could they leave that share to myself, and what kind of tax would it have? Currently the will is set up to distribute equally to the 2 remaining children (of which 1 is my mother) - the relative is still healthy so is not a 'last ditch' attempt at avoiding IT either.
Matt
A HMRC search gives: www.hmrc.gov.uk/cto/customerguide/page8-1.htm
What if the investment is for a tiny %age of the company, would they make comment?
What if the investment is for a tiny %age of the company, would they make comment?
Correct me anybody if I am wrong:
If an individual holds a shareholding in an unquoted company for more than 2 years, on the passing of the individual, Business Property Relief will be available to reduce IT on the bequeath to 0%.
I don't think there are anti-avoidance rules here because it would be a genuine investment and obviously your relative would be bearing all the risks involved with this.
Just be aware of the 2 year rule.
If an individual holds a shareholding in an unquoted company for more than 2 years, on the passing of the individual, Business Property Relief will be available to reduce IT on the bequeath to 0%.
I don't think there are anti-avoidance rules here because it would be a genuine investment and obviously your relative would be bearing all the risks involved with this.
Just be aware of the 2 year rule.
Gassing Station | Business | Top of Page | What's New | My Stuff