Private client compass

Private client compass | Navigating you through the tax landscape

The UK tax system is as complex as ever before and the penalties for getting it wrong are at their most severe.

Our role at RSM is to guide you through these complex rules. Below are a range of insights for individuals, business owners and for international clients on a number of planning opportunities that are available as well as key ideas on how we can help you navigate the tax landscape.

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Succession

One of the main factors in managing succession well is to start planning and discussions early. Too often this issue is pushed to one side in favour of more appealing tasks, resulting in uncertainty and potentially financial loss for the family.

Effective succession planning involves the protection of family wealth, taking into account family dynamics and the personal circumstances and needs of individual family members. Where there is a family business or significant assets to manage determining who the most appropriate person is to be the future guardian of wealth for the wider family and future generations can be a difficult decision and one that is often best made collaboratively. 

When it comes to tax, there is a range of different reliefs, as well as legal and timing considerations to factor into the equation. These may include deciding whether to make lifetime gifts, or to leave assets on death, will writing and utilising inheritance tax and capital gains tax reliefs in order to preserve value. 

Creating a clear succession plan with appropriate advice and support can deliver peace of mind around these issues while protecting the family wealth for future generations.

Private client compass - succession

The family business – do you have a succession plan?

Shares, built up over a lifetime of hard work in a family or ‘owner managed’ business may be your most valuable asset. Effective planning is essential to ensure a successful transfer of the business to the next generation. Find out what the key considerations are in implementing the most tax efficient solution to family business succession.
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Private client compass - succession

Succession and the law

Mortality, no one really likes to think about it. Some people’s view is “what do I care? I’ll be long gone”. Others prefer to leave their affairs in as orderly a state as possible. Whichever camp you are in, legal steps need to be taken. Find out what the most tax efficient steps and actions available to you are.
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Private client compass - succession

Future proofing your family wealth

The Office of Tax Simplification (OTS) has recently released its second report following its review into avenues to simplify Inheritance Tax (IHT). As anyone who has had the pleasure of dealing with the complexities of IHT – in their own lifetime or after the death of a loved one – will know, it is not easy to navigate the various reliefs, allowances and exemptions to ensure tax efficiency. Find out what is best practice when navigating this complicated landscape.
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Property

Since April 2012 we have seen increased Government focus on revenue raising from owners of UK situated properties, both commercial and residential. Whether the property is owned outright or through a limited company by UK resident or non-resident individuals these changes will affect how much tax is paid and when. 

A number of the measures introduced are now law, some are transitioning into law and some are proposed to be law by 2020. The 2018 Budget alone introduced seven separate proposed measures which could affect property owners. 

Therefore by 2020 the tax landscape will have changed with additional tax being payable by the unwary. The time is right to consider the impact of these changes and how they can be mitigated.

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Trusts and alternatives

Trusts and similar structures play an important role in the protection and growth of a family’s assets and often form part of an individual’s strategy to pass wealth to the next generation, reducing their exposure to Inheritance Tax. The concept of a trust has been around for centuries but how they operate in practice is still unfamiliar to many.

In family situations, a trust allows an individual to give assets away so other family members can benefit from them whilst retaining control. For example, a grandparent might be considering making a gift of cash to their grandchildren but would prefer to control how that cash is invested and when their grandchildren can access it.

Trusts and other similar structures like Family Investment Companies can help achieve this objective. Whilst the tax and legal implications of such structures can sometimes appear daunting, the complexities of establishing them and their ongoing management can be simplified with appropriate advice and support.

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