Hi
I recently listened to the WTT/MyFD seminar regarding the 7a Apr 6th 2017 legislation.
But I am confused about the benefits of getting my loans released.
If the loans can be released (i.e. the obligation to repay the loan is released) prior to Apr 6th 2017 then they will not be caught by the new 7a amendment legislation which states after Apr 6th 2017 any non-cash repayment is ignored. So a release of a loan before Apr 6th 2017 will not be included in the new 2019 Tax charge but a release afterwards will be.
But will the “transfer of value” of the loan whether released prior or post Apr 6th 2017 then be liable to inheritance tax.
It seems whichever way you treat your loan will have to pay Tax either in the form of “Income Tax” or in the form of “IHT” – is this correct???
Is there a benefit of paying IHT over income tax?
Thanks for any help
I recently listened to the WTT/MyFD seminar regarding the 7a Apr 6th 2017 legislation.
But I am confused about the benefits of getting my loans released.
If the loans can be released (i.e. the obligation to repay the loan is released) prior to Apr 6th 2017 then they will not be caught by the new 7a amendment legislation which states after Apr 6th 2017 any non-cash repayment is ignored. So a release of a loan before Apr 6th 2017 will not be included in the new 2019 Tax charge but a release afterwards will be.
But will the “transfer of value” of the loan whether released prior or post Apr 6th 2017 then be liable to inheritance tax.
It seems whichever way you treat your loan will have to pay Tax either in the form of “Income Tax” or in the form of “IHT” – is this correct???
Is there a benefit of paying IHT over income tax?
Thanks for any help
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