Duke of Westminster

[ASB]

Wasnt there a huge tax case involving the grosvesnor estates and their structure about 80 years ago?

[webberg]

The law in this area also says that if you "gift" assets to another person but continue to enjoy those assets or the fruits of those assets, then the gift can be ignored and you are treated as though you own the assets.

There are ways to separate the ownership of the assets and the fruits of ownership. These have varied over the years as fashions change and have included UK trusts, offshore trusts, family partnerships etc.

There have been tax cases seeking to strike down some of these schemes. Some HMRC has won, some they have lost.

However the intention of Parliament is that continuing to enjoy the fruits of ownership should mean that the gift is regarded as ineffective.

I suspect with a fortune the size of this one however, they could probably afford to put aside a hundred million or so to look after the old man and not make a serious dent in the portfolio.

[Not Losing Any Sleep]

It's the law - gift your stuff to somebody (including trust), live 7 more years and there is no IHT.

IMHO there should be no IHT in the first place.

Couldn't agree more! When you think about it for a minute the 7 year gifting rule is pretty arbitrary and is more realistic for the very wealthy. I sure don't intend leaving any money to HMRC when I die!

[AtW]

It's the law - gift your stuff to somebody (including trust), live 7 more years and there is no IHT.

IMHO there should be no IHT in the first place.

[DotasScandal]

No one in HMRC has the yearly target to get £3bn in inheritance tax from the Westminster estate
Entire departments have a individual yearly target to collect money from loan schemes.

And the above is merely a consequence of political decisions at the top.
Please understand it's about the message, not the financial fallout (which, like for IR35, is laughable).
And the message is: "tax avoidance" is reserved for the members of the Club. If you (plebs) partake in something reserved for members of the Club without belonging to the Club, there will be endless punishment to suffer.

[eek]

Duke of Westminster "legal" IHT arrangement likely to avoid £3.9bn of tax. HMRC unlikely to challenge.

Contractor schemes likely to bring in less than £500m (according to our model). HMRC throwing the kitchen sink - paid for by taxpayer funds.

Go figure.

No one in HMRC has the yearly target to get £3bn in inheritance tax from the Westminster estate

Entire departments have a individual yearly target to collect money from loan schemes.

[NotAllThere]

Give stuff to your offspring, live seven years beyond that, and there's no inheritance tax. AIUI the trust arrangement is to prevent them wasting it.

[webberg]

Duke of Westminster "legal" IHT arrangement likely to avoid £3.9bn of tax. HMRC unlikely to challenge.

Contractor schemes likely to bring in less than £500m (according to our model). HMRC throwing the kitchen sink - paid for by taxpayer funds.

Go figure.

[DonkeyRhubarb]

The fact it was used by people to increase their take home pay also means that no one has the money to push HMRC into court when HMRC starts asking for money.

Not individually but collectively it wouldn't take much to create the mother of all fighting funds.

I wouldn't be surprised if more than 50,000 contractors have used loan schemes.

If everyone chipped in £1,000...

Of course, for various reasons, it will never happen.

[eek]

Will the DoW's tax affairs have an impact on contractors who have used trusts in the past to reduce their taxes?


Inheritance tax, and how the Dukes of Westminster avoid it on their £9bn fortune

No it's a carefully created over the long term plan that actually works and has the money to fight any attempts to tax it.

The typical contractor scheme was insane, half baked (at best) and sold by spivs to people who were scared by ir35 into joining said madcap scheme. The fact it was used by people to increase their take home pay also means that no one has the money to push HMRC into court when HMRC starts asking for money.

[MrMarkyMark]

Will the DoW's tax affairs have an impact on contractors who have used trusts in the past to reduce their taxes?


Inheritance tax, and how the Dukes of Westminster avoid it on their £9bn fortune

No, because only little people pay taxes

[WTFH]

Will the DoW's tax affairs have an impact on contractors who have used trusts in the past to reduce their taxes?


Inheritance tax, and how the Dukes of Westminster avoid it on their £9bn fortune