The general rule is any asset held by an individual in a personal capacity will form part of their estate on death for inheritance tax ("IHT") purposes. This includes assets held solely or jointly.
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One of the recent story lines in TV's Coronation Street dealt with the aftermath of Geoff Metcalfe's death, which saw his wife Yasmeen having been omitted from his Will. Geoff left his entire estate to his son Tim, including his shares in the house and business he jointly owned with Yasmeen. If that happened in Scotland, could Tim decide that he wanted his inheritance to be made over to Yasmeen instead?
HM Revenue and Customs (HMRC) have announced that self-assessment taxpayers will not be charged the 5% late payment penalty as long as they settle their tax or set up a payment plan by 1 April 2021. The payment deadline for self-assessment is 31 January and interest is charged from 1 February on any amounts outstanding. Usually, a 5% late payment penalty is also levied on any outstanding tax as at 3rd March. But this year, following on from the extension to the submission date for returns, HMRC is giving taxpayers more time to pay or set up a payment plan.
The Marriage Allowance is a tax allowance that is often forgotten about. It offers individuals the chance to transfer part of their personal allowance to their husband, wife or civil partner, which could reduce their tax bill. For some couples, this could mean a backdated payment of up to four years of claims which could be as much as £1188.
As travel restrictions to and from the UK continue to apply, many taxpayers and their employers continue to raise concerns about the impact of additional unplanned days spent in the UK on their employees UK residence status, and it's knock on effect of how they are taxed in the UK.