Ensuring Digital Signature Lawfulness for Assignment of Partnership Interest in the United Kingdom

How to eSign a document: digital signature lawfulness for Assignment of Partnership Interest in United Kingdom

is it possible to transfer a property to your child and avoid both stamp duty land tax and inheritance tax well that's a great question and it's something that we answer in this video so go check it out abbas has said how do i transfer my buy to let property to my sons without incurring stamp duty if this is not possible how can i leave the property to them with no or little inheritance tax um so over to you what's the view of reducing stamp due to land tax and inheritance and first of all let's think about this when do you paste don't do to tax that's a great question so just to be clear um from the question that was asked um it did say how do i prevent stamp duty now stamp duty is something quite separate although connected in the same body of tax as you might say but actually what the kind of tax that you would pick up potentially is stamp duty land tax so we just want to be really specific on this point um stamp duty land taxes incur typically when you are buying a property and the amount of stampedes you land tax is typically connected to a the value of the that you are buying or rather the debt that you are for want of a phrase incurring and also it's a connected to the type of asset that you're buying so is it residential or very technical here non-residential so depending upon which one of those they are depending upon the value of the asset you're buying and there are some other reliefs around it which i'm not going to get into detail on tonight will determine how much stuff did you land tax you have to pay and you have to pay it quite quickly as well so after you've forked out for buying a brand new asset that's probably cost you an arm and a leg to say the least um get ready to pay within i think it's is it 14 days 14 days get ready to pay in 14 days a percentage of that purchase price uh straight over to the stat duty office and which i would also say is make sure that you check uh and double check what this listers are telling you to pay in regards to due to land tax we're seeing an awful lot of solicitors making mistakes using generic hmrc calculators and then getting that wrong so as an aside check double check those calculations uh okay so that's dumb due to non-text so think about how we might mitigate that and that the crucial thing there is if there is no consideration there's no sdlt so a gift would suit that so if you are thinking about mitigating slt surely enough is get rid of sdl uh the property with no consideration as in do not accept any money from your sam or even the clearance of debts from your zone as well so if it has a buy to that mortgage and they clear it that will be considered consideration considered consideration people need to work on it um yes the jokes are as ugly as i am um so let's uh think about inheritance tax louise when do you pay inheritor tax because i'm going to be paying very special attention well oddly enough there are two times when inheritance taxes incurred typically firstly it's incurred sadly at someone passing um and their estate being worth a certain amount of money over the inheritance tax threshold at which inheritance tax is paid but the second time is actually whilst you're still alive which is really quite worrying and that is typically when you transfer a particular type of asset into a trust not a bear trust there are lots of different trusts out there but bear trust is not classified as a trigger for inheritance tax in those instances but typically if you're transferring into a trust you're possibly going to pick up inheritance tax that's a bargain rate of just 20 simon just out of interest that trust is it a grizzly or polar i'm not even going there okay so i think if we answered that then saying harrison's tax is stampede land tax i'm not sure perhaps so let's convert so maybe what the idea is if you want to mitigate both inheritance tax and uh seot the quicker you get rid of an appreciating asset minimizes the inheritance tax if you gift an asset and you survive seven years then it would not be subject to inheritance tax so if you gift it no money consideration at all within seven years it is going to be free from sdlt and free from ihd that is the best way to do it the only downside of course is that in the process of handing over that asset to somebody as a gift you may still incur capital gains tax and so you really need to work with your advisors to establish what amount of tax you're going to pay it's a very rare beast to see it but you might find yourself picking up a bigger tax bill because it's capital gains than you might have done if you'd considered stamp duty so just bear in mind that there are lots of different taxes out there and you might get out of one but you incur another it's working out which one is the lower option for you that darn ugly beast hopefully that video was useful for you but please do not stop there there are plenty of videos that i know that will help you build your wealth whilst reducing your tax liability and in this video well this is the one i think you should be watching right now you