With an election looming and candidates battling in the polls, there’s been plenty of industry news to keep track of. Welcome to the wrap-up of the top ten most popular stories in STEP’s online UK Digests throughout April 2015 as clicked by our readers.
HMRC cannot reject tax rebate claims as ‘out of time’: The Upper Tax Tribunal has ruled that HM Revenue and Customs has no general right to refuse a taxpayer’s claim for a refund of overpaid tax going back more than four years. The decision partially overturns HMRC’s customary practice.
Widow seeks deceased husband’s ‘secret assets’: The widow of property developer Jack Dellal is bringing a family provision claim against his estate under the Inheritance (Provision for Family and Dependants) Act 1975, even though she is the sole beneficiary of his will. Ruanne Dellal claims that the GBP15.4 million of assets declared in her husband’s inheritance tax return is only a tiny fraction of his true estate – most of which, she says, he put away in secret trusts, bank accounts and gifts to his issue from other relationships.
When beneficiaries ask the executor to renounce: A thread is in progress on the Trusts Discussion Forum regarding the duty of a professional executor who was appointed by the testator, but is now faced with beneficiaries unanimously asking him to renounce.
Conservative Party promises GBP1 million homes will be IHT-free: The Conservative Party general election manifesto will include a promise to add a transferable family home allowance of GBP175,000 to the existing inheritance tax (IHT) nil-rate band from April 2017. This would enable a couple to pass on a principal residence worth GBP1 million to their children free of IHT.
Guide to pension freedom: Ernst & Young has published a guide to the pension freedom measures that came into effect on 6 April, allowing all individuals aged 55 or over to draw from their defined contribution pension fund however they wish. HM Revenue and Customs’ helpline dealing with the reform is reportedly saturated with callers.
Additional ISA allowance for surviving spouse: New rules have been published explaining how the surviving spouse or civil partner of a deceased holder of an individual savings account (ISA) can use an additional ISA allowance from 6 April 2015. Survivors can use the additional allowance to subscribe to one or more accounts with an ISA manager other than the deceased’s manager, and can subscribe cash up to the value of the deceased’s stocks and shares ISA if they cannot subscribe non-cash assets.
Recent tax changes of most relevance to lawyers: Tax experts at UHY Hacker Young have written a helpful guide to the tax changes introduced by the Finance Act 2015 that are of most relevance to solicitors. They include the new restrictions on principal private residence relief (PPRR), capital gains tax (CGT) on disposals by non-residents and the extended annual tax on enveloped dwellings (ATED), as well as the amended remittance basis charge.
Where to apply for the quickest probate turnaround: There is considerable variation among probate registries’ lead times for issuing a grant of probate, according to practitioners.
Owner’s reasons for keeping property in sole name were not an admission of shared ownership: The England and Wales Court of Appeal has rejected a woman’s claim to a half share of a number of properties and a business held in the sole name of her former cohabitant. Pamela Curran said Brian Collins had made excuses for not putting the properties in joint names, and that this amounted to an admission that she should be joint owner.
Guide for settlors of offshore trusts: HM Revenue and Customs has published new guidance on capital gains tax for settlors of a non-resident trust
The STEP Industry News Digests provide a round-up of relevant industry news for trust and estate practitioners and other professionals in the wealth management sector. They provide brief summaries of topical news stories gathered from news providers internationally, providing a quick reference for busy practitioners to all the relevant news and issues. The News Digests also feature job listings from our recruitment site and list local STEP branch events and conferences. STEP’s digest services include twice weekly UK and Wealth Structuring (international) editions as well as a bi-weekly North America Digest focusing on the US, Canada and Mexico, and a Latin America Digest.
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