Inheritance Tax and Loans
A change was introduced in the 2013 Budget relating to the way loans affect the inheritance tax (IHT) position on assets qualifying for IHT reliefs - effectively this means agricultural or business properties and land.
As ever, it is not good news for the taxpayer!
However, the new rules only affect the position where the loan(s) were taken out after 6 April 2013.
If you are now taking out a loan or mortgage in respect of a business or agricultural property, it is important that you talk to Victoria Bishop, robinson+co’s Tax Partner, as well as your usual Engagement Partner, to ensure that the transaction is set up as tax effectively as possible.
This also applies to reorganisations of your current loan/mortgage/overdraft arrangements.
Victoria can be contacted on 01900 603623 or firstname.lastname@example.org