Estate Planning - 2021 Virtual Conference
Chaired by John Bunker and delivered by a panel of experts, this new virtual conference will focus on key developments in law and practice in a wide range of areas from IHT reforms, through to effective use of lifetime IHT exemptions and reliefs to mitigate IHT.
Each session will provide an opportunity for questions and answers.
This live and interactive conference will cover the following:
10.00am-11.00am: Purchasing the Lifestyle Farm for Tax Relief Advantages
Julie Butler, Butler & Co. Chartered Accountants
The purchase of a farm by a ‘lifestyler’ can be very tax efficient.
This session will set out the advantages and disadvantages of the purchase as an estate tax planning tool whilst looking at current changes in farming and diversification. With the reduction in the BADR (was ER) limit from £10million to £1million, the use of rollover relief to buy the lifestyle farm has become more attractive.
The session will cover:
- A large element of wealth escaping IHT through APR and BPR (with HMRC scrutiny)
- With no changes to APR/BPR in the budget this is still very attractive
- The ability to rollover gain from previous business/development into purchase and improvements to the farm
- The input VAT claim/benefit of work to enhance and diversify the farm
- The efficient use of sideways income tax loss relief offset against other income (25% cap) and CGT at 100%
- CGT utilisation of BADR/rollover relief on potential subsequent sale/development of part of the farm
- The mixed rate SDLT advantage on purchase and on possible sale of elements e.g. cottages with land
11.00am-12.00pm: Family Investment Companies - The Challenges Ahead
Deborah Clark, Partner, Mills & Reeve LLP
HMRC have established a special unit looking at the tax risks of family investment companies with a particular focus on inheritance tax.
So what does this mean for existing family investment companies and would you still consider setting up a new one?
This session will bring you up to date on current issues for family investment companies and will explore:
- What challenges or changes might existing family investment companies have to face?
- What practical steps should family investment companies be considering?
- Should you still be setting up a family investment company?
Break for lunch
1.00pm-2.00pm: Civil Partnership & Marriage - Tax Issues on Becoming Spouses or CPs
John Bunker, Head of Private Client Knowledge Management, Irwin Mitchell
The extension of civil partnerships to all, as an alternative to marriage, may attract some long-term cohabitees.
This change of status can have significant implications for legal and tax rights.
What are the main tax issues to be considered, some of them not so favourable? An effective estate planning strategy needs to factor in these issues, on which this session will help you advise your clients.
The session will cover:
- IHT spouse exemption and wills - issues arising for a will on outright and trust gifts
- RNRB provisions for IHT mitigation - highlighting key planning to maximise tax saving
- CGT inter-spouse/civil partner relief - opportunities arising to be considered
- CGT PPR relief - choices to make on elections as spouses share a main residence
- SDLT higher rate for additional dwellings - the downside of one main residence for the HRAD charge and how the new status also affects first time buyers’ relief
2.00pm-3.00pm: Estate Planning Case Law Update
Helen Forster, Consultant, Legal Studio Solicitors
In an ever-changing area of law, it is important to keep up to date with the latest case law in the area and any precedents that follow from the same.
This session will cover:
- A summary of the latest case law on the subject
- Resulting advice to be given to clients on the application of such case law
- Guidance on how the case law affects day to day estate planning
3.15pm-4.15pm: Effective Use of Lifetime IHT Exemptions & Reliefs to Mitigate IHT
John Bunker, Irwin Mitchell
The OTS and others have proposed changes to IHT reliefs and exemptions, so it is worth considering how to make the most effective use of them.
We will take account of any changes in the 2020 Autumn Budget, as there were no IHT changes in March, but recognising that taxes will need to be raised; and consider how to make the most of any changes to help clients.
This session will help you to advise clients by considering:
- An overview of the exemptions, and how they interact, for sensible use
- Making full use of ‘normal expenditure’ exemption and what is ‘income’?
- APR & BPR - key planning issues and the problem areas like ‘excepted assets’
- Advising clients on a possible change in the trading threshold for BPR to 80%?
- Anticipating the possible loss of CGT uplift where a spouse exemption or 100% relief
- Exploring the value of will trusts, to help with any changes and maximise use of reliefs
Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.