In helping you to plan for inheritance tax minimisation, it may be beneficial to consider your estate and trusts.
Trusts enable assets to be given away while still retaining some control over them. Income can be paid to different persons with the capital ultimately going to other persons.
The main types of trusts which are used for tax planning purposes are the following:
- Interest in possession trust: this type is one in which one or more of the beneficiaries has a right to receive the trust income or has the use and enjoyment of the trust fund.
- Discretionary trust: this type is one where the payment of any trust income is at the discretion of the trustees.
- Accumulation and maintenance trust: this type is a suitable vehicle where the beneficiaries are under the age of 25.
We can review your existing trusts with a view to ascertaining their current tax efficiency or review your circumstances and advise on the most efficient kind of trust to meet your requirements. We will also examine draft trust deeds to ensure that they achieve your needs and will result in the most beneficial tax advantages for you.
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The cash flow difficulties that late payments cause small businesses are well known. However, the cost of recovering late payments is less well publicised, despite being a major and growing expense – coming in at around £9,000 last year for an average business.
Research by Bacs Payment Schemes found that the cost of recovering late payments has increased considerably in recent months. Collecting money owed to them collectively cost small businesses £6.7 billion in 2018, having risen from £2.6 billion in 2017. The figures comprise costs such as staff time and interest on borrowing taken out to make up for the shortfall caused by late payments.
Small businesses’ efforts to tackle the problem could be beginning to pay off – with the total value of late payments falling from £14 billion in 2017 to £13 billion in 2018.
Paul Horlock, Chief Executive of Pay.UK of which Bacs is a part, said: “When smaller companies do well, so does UK plc; as the backbone of the whole economy, the significance of SMEs cannot be overstated.”