If you have a property portfolio did you know it’s possible to:
Reduce the 40% Inheritance Tax rate to 0%?
Reduce the 28% Capital Gains Tax to 0%?
Reduce Stamp Duty to NIL?
Most businesses will qualify for Business Property Relief. Meaning the business does not form part of your Estate for inheritance Tax (IHT) calculations. However, a Buy To Let (BTL) portfolio, whether it be residential or commercial, does not qualify for Business Property Relief. Therefore the portfolio, less any mortgages or debt, will form part of your Estate for IHT calculations.
There are solutions to alleviate IHT and to reduce the Capital Gains Tax, along with Stamp Duty, to 0%. It requires intricate Tax Specialist Planning. There is a minimum criteria to meet before such Planning can take place. The criteria is as follows:
More than 3 properties (excluding the main residence and foreign property).
That the properties (minimum of 3) generate rental income of £25,000 gross p/a or more.
That you spend at least 10 hours a week or more dealing with your portfolio.
In short, it is possible for your portfolio to be free of inheritance tax – without triggering any charges to Capital Gains Tax or Stamp Duty or without having to remortgage.
Costs will be confirmed in the free-of-charge feasibility report as an accurate figure cannot be given without a full appraisal of your portfolio and circumstances.
If you have a Buy To let portfolio and are concerned if this creates an Inheritance Tax liability, feel free to call us for a discussion.