Assets fact find Flashcards
Simon
40% inc (joint 104,756 inc, £65928 income, 11,841.30 shortfall) Psa 500 0% for him cash 32.5% divi 2k allowances shares oeics 20% CGT on shares oeics Tax free premium bonds and isa
Tax reducer VCT/EIS/SEIS max 30% in line ATR, save IHT and reduce income tax liability.
Iht everything included left to each other on death spousal exemption 1st death, included in estate on 2nd death except pensions. Is has additional permitted subscription on 1st death. Dis has no nom -would be outside estate if in trust or spousal by pass.
Mortgage past nra
ATR high
ASu inadequate
Shortfall if Emma at uni or one loses job
Grace
20% inc (joint 104,756 inc, £65928 income, 11,841.30 shortfall) Psa 1000 0% for her cash 7.5% divi 2k allowances shares oeics 10% CGT on oeics Tax free isa
Mortgage past nra
ATR medium ethical
Dis inadequate doesn’t cover mortgage
Shortfall if Emma at uni or one loses job
IHT liability £1425000-£275k mortgage= 1,150,000 net assets
£325.000 X 2 NRB =£650,000
£250,000 RNRB (£150 x 2 but limited to net house £525k-£275k=£250k)
=£250k outside estate
Based on:
Grace dying first & paying her life cover to Simon so in his estate
Simons business 100%BR relief
Wills leaving to each other so no iht on first death
Pensions paying to each other survivor FAD
House Car Bank Premium bonds ISA x 2 Oeics Shares Investment bond Life policy 108k
Tax reducer
Use allowances, reliefs, eis vct seis
Xfer savings income to grace
Switch cgt investments to grace
Move investments into Isas or PSA/DA
Make pen cons
High income child Ben charge
One partner has adjusted net income over £50k (Simon)
Reduces charge by 1% for every £100 over £50k income
Simon £4000/100x17.88=715.20 charge
Can reduce charge by reducing salary or making personal pension cons
Could employ grace as co director:
She could receive Divi
Co would pay her salary meaning she might get state bens, 0%nic, and salary is business profit.
Must be reasonable for work carried out.
