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Where Taxpayers and Advisers Meet

Search found 38 matches

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by sandy2000
Sun Feb 18, 2018 5:17 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Inheriting Rental Property
Replies: 16
Views: 2050

Re: Inheriting Rental Property

Thank you for your considered response, "someone" ISTM that the executors have to find someone to accept the 70k of debt in return for 70k of the asset or they have to repay the 70k of debt (either by selling (a share of) the asset or from other resources in the estate) Given that if it is an ongoin...
by sandy2000
Sun Feb 18, 2018 4:38 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Inheriting Rental Property
Replies: 16
Views: 2050

Re: Inheriting Rental Property

@sandy: The question was answered correctly 4 years ago. Why do you think the answer was wrong? @someone: Why do you think SDLT would be payable? (Clue: Para 3A, Sch 3, FA2003) bd6759 Thanks for responding. 4 years ago most of the answers focused whether any IHT was payable or not .. and none that ...
by sandy2000
Sun Feb 18, 2018 3:29 am
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Inheriting Rental Property
Replies: 16
Views: 2050

Re: Inheriting Rental Property

I was referring to the original post: the NRB bequeath to children in the will, and the other partner of property business is allowed to keep the mortgage by the bank on behalf of self and the beneficiaries of the deceased 50% Father passed away with 50%share of investment properties = 470k and a 50...
by sandy2000
Sat Feb 17, 2018 1:57 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Inheriting Rental Property
Replies: 16
Views: 2050

Re: Inheriting Rental Property

The query from the OP was regarding the relative share of inheritors, and not about transferring assets or the mortgage to beneficiaries. Accepting that the mortgage remains with the other main borrower.. In this case for a property worth 940k and mortgage 140k giving a net of 800k; 50% share would ...
by sandy2000
Fri Feb 16, 2018 9:54 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: Inheriting Rental Property
Replies: 16
Views: 2050

Inheriting Rental Property

I came across an interesting query on this forum... https://www.taxationweb.co.uk/forum/viewtopic.php?f=8&t=43858#3x2Jbfji5dU1dQoq.99 In case of inheriting a share in an on-going property business, wanted to understand if it is technically correct to include a share of the outstanding mortgage loan ...
by sandy2000
Fri Feb 16, 2018 9:35 pm
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: business property and IHT
Replies: 6
Views: 1240

Re: business property and IHT

It isn't essential to hold the property jointly but it might help. The two most important factors would be to make sure the legal documentation (e.g. partnership agreement) make it clear that the partner(s) have contributed the property as part of their capital contribution and for that then to be ...
by sandy2000
Fri Feb 16, 2018 9:27 pm
Forum: Property Taxation
Topic: Three ways to account for mortgage arrangement fees: Which one is correct?
Replies: 8
Views: 1438

Re: Three ways to account for mortgage arrangement fees: Which one is correct?

However, the overarching principles of GAAP may require a significant arrangment fee to the amortised over the period. Agreed.. Thanks for confirming. "significant" could imply significant in relation to the annual interest charge, for example? However, most often the fees are around 1% to 2% of th...
by sandy2000
Fri Feb 16, 2018 3:03 pm
Forum: Property Taxation
Topic: Three ways to account for mortgage arrangement fees: Which one is correct?
Replies: 8
Views: 1438

Re: Three ways to account for mortgage arrangement fees: Which one is correct?

I guess it makes sense as, presumably you'll be claiming tax relief on the interest charged if you add it to the loan but you obviously cannot if you don't as there is no interest charged. Didn't quite understand this bit... This would imply that it if interest (on the extra loan to cover the fee) ...
by sandy2000
Fri Feb 16, 2018 2:54 pm
Forum: Property Taxation
Topic: Three ways to account for mortgage arrangement fees: Which one is correct?
Replies: 8
Views: 1438

Re: Three ways to account for mortgage arrangement fees: Which one is correct?

The fee charged is an expense when it is incurred.. When it is added to the loan then effectively it has been paid by the borrower, albeit with another loan .. Just like any business expense paid using a loan. I can't see the justification to mandate it to spread over any length of time - since the ...
by sandy2000
Fri Feb 16, 2018 1:22 am
Forum: Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
Topic: business property and IHT
Replies: 6
Views: 1240

Re: business property and IHT

Yes, it must be a partnership asset rather than owned by the partners and that is a question of fact. If you transfer 50:50 and add the land to the partnership - include it in the business accounts etc, it should then qualify. To understand it better, will appreciate some clarity on making property...

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