Self employed vs small business

[daveindales]

Don't forget the pension benefits of being Limited. Especially if your nearing retirement age. 

[donnk]

buy your yard/lock up personally, say 100k. 

 

Loan the company 150k on paper.

 

company makes a pension payment to your SIPP off 150k

 

pension buys yard off you for 150k. (can raise mortgage if needed).

 

pension charges ltd comp 2 x market rent for use of yard to save double tax.

 

result.

 

comp owes you 100k

you own the yard

tax writeoff of 150k + monthly rent.

 

how think big business does it...

 

 

 

[dan blocker]

23 hours ago, Rich Rule said:

I am not actually sure what you were trying to say.

 

When I did my will it was explained like this, it was also the case when my father passed away.

 

Each person has 350 k allowance.  If one partner dies and the leaves to the other then they pass away within a designated period, the kids would be inline to pay IHT of the value exceeded 350 k.

 

The same scenario but the initial couple are married.  The kids would then have double the allowance I.e 700k before being required to pay IHT. 
 

 

If the couple own a house and leave it to direct descendants- children or grandkids the value is added to the rest giving a total of 1 million as Stubby says. Google Money saving Expert Martin Lewis and he explains it far better than me🤔.

[spudulike]

Yup, the Nill Rate Band on inheritance is currently £325K and if the "main residence"is left, you have a further NRB of £175k on the property. This is per parent so if you lose your Mother and her assets go to your Father, the NRBs are parked until the last parent dies meaning £325k x2 plus £175k x2  or £1m before you pay inheritance tax. 

If the parent goes in to a care home, the £175k NRB is still applicable if the sale of the main residence makes up a portion of the inheritance.

The long and short is that each parent has a NRB of £500k so you can inherit up to that from each parent before inheritance tax cuts in.....currently!

[openspaceman]

20 minutes ago, spudulike said:

Yup, the Nill Rate Band on inheritance is currently £325K and if the "main residence"is left, you have a further NRB of £175k on the property. This is per parent so if you lose your Mother and her assets go to your Father, the NRBs are parked until the last parent dies meaning £325k x2 plus £175k x2  or £1m before you pay inheritance tax. 

If the parent goes in to a care home, the £175k NRB is still applicable if the sale of the main residence makes up a portion of the inheritance.

The long and short is that each parent has a NRB of £500k so you can inherit up to that from each parent before inheritance tax cuts in.....currently!

There are some niggles though, they have to be married or civil partnership and cohabiting the same residence is my understanding, if they own two homes it's a bit different.

[Gardenscape]

On 27/04/2023 at 17:14, eggsarascal said:

Crazy that people have to give their things away to avoid IHT, my mates parents gave their campsite to their daughter to avoid it, same money going to the same family, just a change of ownership on the paperwork,

The whole system is rigged against us. I hate it.