Archive for November, 2007
Thursday, November 29th, 2007
Inheritance tax (IHT) bills can be met through the “simple and reliable” use of a whole-of-life insurance policy, reports the Telegraph.
The publication explains that in the case of civil partners or married couples, such a policy is taken out on a “joint life, second death” basis, where the payout provides a way to deal with the costs of IHT.
In order to ensure that couples benefit fully, the policy should be placed in trust and a will needs to be drawn up detailing the arrangement.
There are a number of types of whole-of-life policy and it may be advisable for those concerned with such issues to seek legal advice before making any investments to ensure that they are aware of all possible ramifications.
Following proposals by the Conservative party to raise the IHT limit to £1 million, the chancellor of the exchequer, Alistair Darling, announced an increase in the nil rate band for couples to £600,000 in his pre-Budget report.
Posted in Inheritance Tax | No Comments »
Wednesday, November 28th, 2007
Consumers should seek advice on inheritance tax (IHT) before investing in property abroad, a firm of independent financial advisers (IFA) stated in recent days.
Alex Pegley, director at Calculis, explained that tax is constructed in a different way overseas, a fact that potential buyers should take into consideration before a purchase.
“They should get a feeling for what the IHT situation is in the country they’re buying in. With the UK situation, talk to a UK IFA or an accountant. But abroad, they really need to talk to the person in the country they’re buying in,” he said.
Mr Pegley concluded that the only way to avoid UK IHT is to become non-domiciled, which he said is a drawn out, complicated and “night on impossible” process.
Following proposals by the Conservatives to raise the IHT band to £1 million, chancellor of the exchequer Alistair Darling announced an increase in the allowance for couples to £600,000.
Posted in Inheritance Tax | No Comments »
Monday, November 26th, 2007
Those considering the potential of releasing equity from their home may be interested to learn that a number of firms have improved access to the service.
Financial advice site Moneyfacts.co.uk reports that Prudential and New Life Mortgages have reduced the age limit at which they offer such services from 60 to 55.
As such, only Scottish Building Society has a lower age limit of 50.
David Knight, mortgage analyst for Moneyfacts.co.uk, notes: “With the current climate of insufficient pension pots many people are expected to need to supplement their pensions at an earlier age and one of the ways of doing this is through the equity found in their homes.”
Consumers considering equity release may find it beneficial to obtain legal advice before doing so, in order to establish their position in the eyes of the law.
In recent weeks, research by finance firm Home & Capital Advisers indicated that 39 per cent of retirees would be prepared to release equity from their home to improve their financial situation.
Tags: Equity Release
Posted in Estate Agency | No Comments »
Friday, November 23rd, 2007
HM Revenue & Customs (HMRC) considers withdrawals taken from alternatively secured pensions (ASP) or unsecured pensions (USP) as income for inheritance tax (IHT) purposes, it has announced.
As such, consumers who have excess income from USP or ASP that they do not spend can give it away without incurring any IHT charges.
Head of tax and financial planning at financial firm Skandia Colin Jelley commented: “Where HMRC practice has not generally been known, we welcome the introduction of greater clarity.
“Advisers can now be clear on exactly where their clients in USP or ASP stand, and therefore make plans accordingly.”
Consequently, a gift is exempt from IHT if it was made as part of the normal expenditure of the individual making the transaction, if it was made out of income and after allowing for all such gifts which are made out of normal spending, the giver if left with enough to maintain their usual standard of living.
For the tax year 2007-08, the IHT nil rate band stands at £300,000.
Posted in Inheritance Tax | No Comments »
Wednesday, November 21st, 2007
The number of new houses built in Scotland last year fell by 2,300 – or nine per cent – new statistics have indicated.
Figures from the Scottish parliament suggest that in 2005-06 some 26,000 new houses were completed and this figure fell to around 23,700 this year.
Hardships in obtaining planning permission were among the factors that contributed to the shortfall, reports the Scotsman.
Communities minister Stewart Maxwell commented: “The current rate of new house building is simply inadequate. This is why we have proposed a national goal to increase new housing supply to 35,000 a year by the middle of the next decade.”
Individuals planning construction work of their own may find that they benefit from obtaining legal advice before carrying out any developments to ensure they are aware of any laws they must adhere to.
The Council of Mortgage Lenders recently stated that it expects to see a rise in the number of home repossessions as house prices increase next year.
Tags: New Development
Posted in Estate Agency | No Comments »
Tuesday, November 20th, 2007
Ancient trusts and confusion over land ownership laws could prove problems for the development of a nightclub on a Glasgow site.
The city’s local authority believes that sections of the plot, which is located in the city’s Botanic Gardens, fall within the category of “common good” land while the council may not have the right to give certain subterranean sections away.
Head of development and regeneration at Glasgow city council George Ryan told the Herald: “Officials informed us late last week of the latest developments.
“The air space underground isn’t ours to give away and parts of the development would fall foul of common good law.”
Consumers concerned over issues of land ownership and other commercial law may find they benefit from seeking legal advice on the matter.
Introduced by Robert the Bruce, the law established areas of land to be held by authorities for the good of the people and Glasgow’s common good plot is notoriously fragmented and complex.
Posted in Commercial Law | No Comments »
Monday, November 19th, 2007
The estate of a spinster who died at the age of 107 earlier this year paid more than £2 million in inheritance tax (IHT), it has emerged.
Louise Jane Robertson passed away in May, but the extent of her wealth has only recently been revealed.
Totalling £7,210,633.57, Ms Robertson’s estate was subject to a total of £2.4 million in IHT.
According to the Daily Record, included in the legacy was cash, investments and shares worth £6 million, her home worth around £750,000 as well as £40,000 in furniture and jewellery.
Charities that benefited from large donations from Ms Robertson included the National Trust for Scotland, the Royal Scottish National Orchestra and Marie Curie Cancer Care.
At present, IHT applies to the taxable value of an individual’s estate that is more than £300,000 (2007-2008 tax year) and is payable at 40 per cent, those wishing to learn how to avoid or reduce IHT payments may wish to seek legal advice on the matter.
Posted in Inheritance Tax | No Comments »
Thursday, November 15th, 2007
A one-stop shop for the provision of legal services would be welcomed by consumers, MSPs have been told
Shadow community safety officer Paul Martin told the Midlothian Advertiser that the party recognises that we live in a "one-stop shop age".
"It is clearly evident that consumers – all of us – want our commodities to be available at the one point of contact," he added.
He added that the notion of being able to access legal services and other commodities via one point of contact sounds appealing and that "probably the majority" of clients would welcome such a business model.
Earlier this month, the Law Society of Scotland issued a consultation paper regarding the possible changes to the delivery of Scottish legal services which would allow non-lawyer providers such as supermarkets to offer legal aid.
It urged all interested parties to respond to the paper by January 31st 2008.
Posted in New Legislation | No Comments »
Wednesday, November 14th, 2007
Despite many females being in control of their monetary situation, there are signs that a considerable amount of women do not give their finances enough attention.
Recent figures from Scottish Widows suggests that while 54 per cent of men who "could and should" be saving for their pension, less than half (41 per cent) of women are doing so.
The Scotsman reports that some 13,000 divorces are granted in Scotland on an annual basis and as such an increasing number of women may face having to fend for themselves financially.
Poor money management could leave such females in danger of running into trouble with finance.
As such, it may be advisable for women to seek legal and financial advice before seeking a divorce to ensure that they are not left in the red, especially if there are children or other dependents to support.
Figures from Scottish Widows suggest that 7.3 million women are financially dependent on their husbands or partners.
Posted in Family Law | No Comments »
Tuesday, November 13th, 2007
Today’s Royal Institute of Chartered Surveyors (Rics) UK housing market survey suggests that house price growth has continued to fall.
Research by the institute indicates that house price growth has reduced for the third consecutive month and at the fastest pace since July 2005, when 30.9 per cent of chartered surveyors reported a fall rather than a rise in house prices.
However, Scottish house prices continued to grow, despite a "marked" slowdown.
Almost a quarter (22.2 per cent) of surveyors reported a fall in October, compared to 14.9 per cent the month before.
Enquiries from first-time buyers declined for the 11th consecutive month and as such the stock of unsold property has risen at its highest rate since May 2003.
Spokesperson for Rics Ian Perry commented that many had been expecting the slowdown.
The institute represents, regulates and promotes the work of property professionals across the globe and has over 140,000 members.
Posted in Estate Agency | No Comments »
