A stalwart of the left, Tony Benn was a critic of tax avoidance measures. As an owner of expensive properties in London and the south of England, it seemed inevitable after his death in March that his family would face a hefty inheritance tax bill. But now publication of the details of his will – coupled with records held by the Land Registry – suggests he took practical steps more than a decade ago to reduce the impact of this tax on his heirs. After the death of his wife in 2000, the couples children appear to have taken on part ownership of the family home, a valuable property in Holland Park, west London. This suggests that some planning had taken place to ensure the children inherited directly from their mother, as opposed to the more normal course of events where the first spouse to die leaves everything to the other, who in turn bequeaths everything to the children on his or her own death. This latter course is especially the norm when the surviving spouse continues to live on in the property. Mr Benn sold the house only in 2011. How did the transfer of ownership cut the familys tax bill? Assuming the couple owned their assets in equal parts, by giving away her share of the property straight to her children or other heirs, rather than her husband, Mrs Benn would make use of her own, personal tax threshold. In 2000 this was £234,000 per person (today it is £325,000). Related Articles Britains other inheritance tax: the poorer you are, the more you pay 29 Oct 2014 The desperate tactics being used to avoid inheritance tax 06 Apr 2014 Three days left to complete your tax return – how can you avoid a £100 fine? 29 Oct 2014 Stealth taxes rise by 50pc in a decade 29 Oct 2014 The go-to label for style-conscious women Sponsored by FedEx If she had simply bequeathed her share to her husband no tax would have been payable by him, as assets passing between married couples are exempt. But, crucially, he would have had more assets to bequeath to his children at his own future death – and the benefit of his wifes personal IHT allowance would have been lost. More tax in total would have been paid. telegraph.co.uk/finance/personalfinance/tax/11189430/Tony-Benns-inheritance-tax-dodge-how-it-works-and-how-you-can-use-it-too.html
Posted on: Sat, 01 Nov 2014 11:33:30 +0000
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