Today’s tax system is complex and involves a number of different taxes, and so, even in an apparently simple and straightforward transaction, there is the potential for a range of tax issues to arise.
Such issues may involve, for example, Income Tax, Capital Gains Tax, Inheritance Tax, Stamp Duty Land Tax and VAT.
It is sensible therefore to take professional advice before embarking on any transaction that might possibly lead to an unexpected, hefty tax bill.
Under the new self-assessment regime, the onus usually falls on you personally to declare any tax liability that there might be, rather than on the Inland Revenue to find out about it. There are also, potentially, criminal penalties for failing to declare any such liability.
You need to take particular care, and obtain proper advice, before embarking on dealings in the following areas:
• Real estate
• Trust property
• Foreign property
• Setting up or selling businesses
• Alterations to businesses
• Company incorporations and sales
• Share transactions
• Deceased person’s estates
• Letting properties
• Agricultural properties and businesses
• Gifts of assets
The above list is not exhaustive, as very many areas of activity can trigger a tax charge. The best rule is therefore to take advice before you act.
Receiving an inheritance, or a large sum of compensation, is often a time when people seek independent advice to determine the best way to invest their money.
There are many independent financial advisors (IFAs) in the area, but knowing which one to use can be a difficult choice.
At Hand Morgan and Owen, we recognise that this can be an important decision and we have established relationships with a select choice of IFAs, each with an excellent pedigree and reputation.
If you would like advice on any aspect of your personal financial planning, please speak to your Hand Morgan and Owen solicitor from Rugeley and Stafford who will be pleased to provide you with details of one of our nominated IFAs.
Amy Glover, Partner, Catherine Cammock, Solicitor and a member of Solicitors for the Elderly, will be on hand.