BN66 - Court of Appeal and beyond

[BolshieBastard]

brilliant commentary and I suspect MP will be all over this like a cheap suit. There are some real nuggets in there that are difficult to argue (for a simpleton like me anyway )

well if they (MP) are, its effing worrying since they should have been arguing the points someone else has patently observed instead of going down the joke HRA route.

[DonkeyRhubarb]

After several months of daily visits to this and the previous BN66 thread, I thought I'd dip a toe in.........please be gentle!

I spent several years in the MP scheme so have a "debt" of £150k+ .......stopped worrying about it years ago to be truthful - but am interested to here what others are doing to mitigate the situation between now and when (if) it eventually goes south ie. inheritance tax planning, etc,.....


COBBLERS

Hi, and welcome to our little gathering.

From what I've read, typical IHT planning with trusts would be vulnerable in bankruptcy.
Welcome to the TACT web site

However there may be more "sophisticated" options...

[DonkeyRhubarb]

Insolvency Practitioner

If anyone wants to get some advice I've agreed a reduced fee for a 60 to 90 minute consultation with a leading firm of insolvency lawyers based in London.

PM me if you want contact details.

[CanPayButWouldRatherNot]

If anyone wants to get some advice I've agreed a reduced fee for a 60 to 90 minute consultation with a leading firm of insolvency lawyers based in London.

PM me if you want contact details.

DR> looks to be interest in the IHT ...so we probably need a similar consultation for inheritance tax planning meeting ...anyone up for sharing the costs for a london based meeting somewhere (or conf call ?).

[DonkeyRhubarb]

DR> looks to be interest in the IHT ...so we probably need a similar consultation for inheritance tax planning meeting ...anyone up for sharing the costs for a london based meeting somewhere (or conf call ?).

The people I've spoken to say IHT planning is likely to be ineffective.

Can you leave this with me for a bit while I make further enquiries.

[SantaClaus]

In light of recent comments, just a gentle reminder this is an open forum read by HMRC. (yep, they really don't have anything better to do!).

Administrators of this forum have divulged real names in the past and no reason why they wouldn't again, if forced to by an injunction.

[DonkeyRhubarb]

If anyone wants to get some advice I've agreed a reduced fee for a 60 to 90 minute consultation with a leading firm of insolvency lawyers based in London.

PM me if you want contact details.

Just to clarify the above, the firm I've been talking to are mainstream insolvency lawyers. Nothing esoteric, no magic solutions.

[prozak]

Hi, and welcome to our little gathering.

From what I've read, typical IHT planning with trusts would be vulnerable in bankruptcy.
Welcome to the TACT web site

However there may be more "sophisticated" options...

Interesting read.

I'm just a bystander in this whole BN66 thing but articles like that make me think I should be planning for things down the line that I don't even know about yet.

I need to read up on this stuff again. last time I spoke to someone they said settling just a few hundred k into a trust may not be worth it. But didn't really discuss adding my house in there.

Anyone have any opinions or linkies about what is the minimum amount that makes a trust worthwhile? I also know that settling your house into a trust is not great unless there are IHT considerations in the future - which for me (non dom and moving back to dom) is not the case as there is no IHT in my domicile.

[geoff from contracta IOM]

Interesting read.

I'm just a bystander in this whole BN66 thing but articles like that make me think I should be planning for things down the line that I don't even know about yet.

I need to read up on this stuff again. last time I spoke to someone they said settling just a few hundred k into a trust may not be worth it. But didn't really discuss adding my house in there.

Anyone have any opinions or linkies about what is the minimum amount that makes a trust worthwhile? I also know that settling your house into a trust is not great unless there are IHT considerations in the future - which for me (non dom and moving back to dom) is not the case as there is no IHT in my domicile.

Hi Prozac

There are a huge number of factors to consider before settling trusts for IHT purposes so you do really need an expert. Some things to consider are the 20% settlement tax during lifetime above the 325K but better than 40% upon death especially as it is calculated on the value at settlement not on passing so for property that is likely to appreciate over 10 -20 years this can be a big difference but there is a 10 year tax charge to be aware of. There are 18-25 trusts for dependants which are treated differently. The quickest rough rule of thumb is to look at the likely tax charge difference between settlement and death ( no-one obviously know when they will die but ) and the costs to set up and maintain the trust until the possible death and weigh them up. It is very complex but if you have or are likely to have assets of 500K + you should take some advice to see if they are suitable for you. This might help -

Why Make a Trust?

[administrator]

In light of recent comments, just a gentle reminder this is an open forum read by HMRC. (yep, they really don't have anything better to do!).

Administrators of this forum have divulged real names in the past and no reason why they wouldn't again, if forced to by an injunction.

No I have not divulged real names in the past, that is utter twaddle. I was called by a special branch detective and was asked to hand over information regarding individuals who had made threats that they perceived as being of a serious nature. I declined their request and was told that they would seek a court order if necessary. If they had gone that far then the server could have been taken offline etc so I found a happy medium of trawling though posts made by all the users they requested, pointing out that quite a few had not made any comments. This cut the list down to five or so posters who the police wanted to contact so I asked them if they wanted to call the detective on his phone number.

I did not pass any details to the police but did pass the police phone number to the forum posters who the police still wanted to speak to.

I explained to the individuals that the detective simply wanted to speak to them and if they didn't then they may have sought a court order to make us hand details over and IP info could have led them to people's work places which could have been a bit embarrassing... All individuals called the police and that was the end of it - bar the memories of some posters on here getting a bit flaky and dishing out this alternative version where I am seen as some sort of HMRC stooge

I am the only person with access to the database, I know my rights under data protection laws and would not hand over any details willy nilly. I feel I resolved a potentially nasty situation for myself and for the posters on here as quickly and painlessly as possible.

As you said though do be careful what you say, not just here but in emails and on the phone - who knows who could be eavesdropping...