March 2019 Newsletter : Cylchlythyr Misol Mawrth 2019
Tony Benn and his family have stayed within the rules and saved £200,000 of Inheritance Tax. He was a great diarist and bequeathed his vast library to the nation. It was valued @ £500,000 but as a gift to the nation, no Inheritance Tax was payable. The ironic message from the great socialist is that legitimate tax planning and foresight can reduce Inheritance Tax.
Successful small companies can often build up significant cash balances. The mainstream banks pay derisory rates of interest, but other challenger banks such as Virgin Money pay much higher rates, currently 1.6% for a 1 year bond.
Making VAT Digital is due to start on 1 April 2019. I have registered with HMRC, have the appropriate accounting software and will contact all VAT registered clients individually to discuss procedures.
Beware of companies offering high rates of interest of 5-7% on what are often advertised as ISA products. One savings company has recently gone into administration. These funds are not covered by the Financial Services Compensation Scheme and you could lose some or all of your capital. Avoid.
Probate fees are increasing significantly on 6 April. If you or your family / friends need to submit a probate application for £215 time is running out.
Ask Huw : What financial circumstance would necessitate an application for probate on the first death from a married couple? The House is in joint names.
Ownership will normally transfer under the survivorship rules without needing probate. Similarly any joint bank accounts will transfer via survivorship rules.
However some financial institutions may require Probate before they release funds, if assets (ISAs / savings accounts) are held in a sole name. There is no set amount for which Probate is not required. Each financial institution selects its own rules, it may be £10,000 for one, £25,000 for another etc.
If you wish to contact me in complete confidence my details are:
www.huwrobertsaccountant.com 07967 976854