TAX PLANNING

This is the one thing people think that they can put off. It isn’t. The fact is that tax is always a significant issue when property and assets are involved. It is our responsibility to assist you in avoiding the burden which may be placed upon you, your family, or future generations. It may be wise to investigate your position early to identify potential pitfalls and then take precautions, planning ahead.

It may seem that you have everything in hand with regard to potential tax liabilities, however, with a succession of tax cases passing through the courts, precedents are continually being set which may change the way the Valuation Office Agency (VOA) interpret all situations and transactions. It is imperative that tax planning is undertaken regularly – as your, and your family’s, situation changes you can guarantee that the amount of tax you may be liable to will change too.

We are great advocates of involving a client’s solicitor and accountant when assessing potential tax traps. We believe that a well informed decision, with the assistance of all advisers, is extremely important. This way all advisers get the “full picture” about your situation and you can take comfort in the fact that our advice is tailored to suit you. We are quite happy to work with your own solicitor and accountant, or can assist in the selection of an appropriately qualified solicitor or accountant.

The role of the valuer is important, to ensure that you are accurately aware of the value of assets held at a particular date. A qualified chartered surveyor/agricultural valuer should prepare valuations for submission to the Tax Office to ensure that figures are fully accurate and justifiable against the scrutiny of the VOA.

We are able to advise on the following forms of taxation:

    • Capital Gains Tax (CGT)
      Accurate valuations are required for CGT calculations and assessments. Theses will often be a retrospective valuation. Sales and gifts of assets can trigger a CGT liability, which is particularly relevant when considering a gift for IHT purposes. Madeleys Chartered Surveyors have excellent knowledge of historic values and also current values to assist with any CGT calculation and tax planning in relation to IHT
    • Inheritance Tax (IHT)
      There recently seems to be more IHT liability arising, particularly as the Nil Rate Threshold captures more people, particularly with property values rising. The treatment of farmhouses within an IHT calculation has been a prominent issue recently, as has development land and land let agreements. Agricultural Property Relief (APR) and Business Property Relief (BPR) should be maximised by seeking professional advice.

It is fair to say that the interpretation of the law by HMRC is changing, particularly in relation to farmhouses, and therefore few people can be confident that tax planning will be perfect. As this interpretation changes it becomes more important to have an updated planning strategy, as many people find that good tax planning advice received a few years ago is now not appropriate.

Often, an informal overview of your situation with provisional values being provided can be sufficient to allow an assessment of tax liabilities in advance of a meeting with solicitors and accountants. Madeleys Chartered Surveyors are in a position to offer practical reasoned advice which can emphasise potential pitfalls and action which may be required.

Please contact us to discuss your particular situation before any action is taken – advice from the outset may save a large tax bill.