Tax Law Uk

Can we really have our cake and eat it? My mother was speaking to her solicitor recently and mentioned that she was concerned about her estate tax liability, which will be around about £120,000. The solicitor put her in touch with a financial adviser who she has spoken with briefly and apparently he suggested a solution which seems too good to be true.

She has a large portfolio of shares, inherited from my father, which she receives a dividend income from. She wants to retain this income or at least access to the money if she needs it for any reason. One area she is concerned about is a large Capital Gains Tax which would be applied if she were to sell the share portfolio. However the financial adviser said that it would be possible to  invest in a product which receives Business Property Relief and therefore means she can defer the capital gain liability and as long as she still holds the investment when she passes away then the gain dies with her. Apparently this plan will also place the money outside her estate after TWO YEARS and it would be in her name in case she wants to take some money back at any point.

If you want to know whether the adviser had all his facts straight or whether my mother had some of the details wrong then new website Estate Tax will be able to help you. It seems like a good solution, if it works. The main question that most people ask is whether it’s possible to receive this ‘business property relief’ even if you don’t own a business?