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Top 3 IHT Queries

If, on first death, everything is left to the surviving spouse/civil partner, does the survivor now have a lifetime gift threshold of £650,000? Unfortunately, the answer is no, as any available transferable nil rate band (TNRB) can only be used against the IHT arising on the death of the surviving spouse - it cannot be used by the surviving spouse/civil partner for lifetime gifting.

There is also a lot of confusion around transferring the residence nil rate band (RNRB), which was introduced in April 2017. The RNRB is transferable between spouses/civil partners on death, much like the standard nil rate band (NRB). It is the unused percentage of the RNRB from the estate of the first to die which can be claimed on the second death. If the first death occurred before April 2017, on the survivor’s death there will be a 100% RNRB available irrespective of whether the first death owned residential property. However, if the first death’s estate was greater than £2m, then the RNRB would be ta…

Allen Tomas & Co employee Leah Bartlett shines

Leah Bartlett joined Allen Tomas & Co in 2018 under the Skills Edge Financial Services Administrator Advanced Apprenticeship scheme. She has made a fantastic start to 2019, she was presented on the 3rd of January with a Norfolk County Scholar award created by the County Council for exceptional performance at A levels and in the same evening was the recipient of the Mark Griffiths award for Endeavour and a subject award in Business sponsored by Stephenson Smart Accountancy.

Leah, has been working extremely hard to pass her first Chartered Insurance Institute exam (R01) Financial Services, Regulation and Ethics, which she did in March 2019. To top things off, Leah won the Skills Edge Ap
prenticeship Awards 'Recognition of Outstanding Achievement and Contributions to the Organisation'. Skills Edge commented "We are absolutely delighted to announce that Leah has won this award. Leah’s dedication to the apprenticeship and to Allen Tomas & Co Financial Management Ltd ha…

Inflation

Consumer Price Index (CPI) The annual inflation rate in the United Kingdom fell to 1.8 percent in January 2019 from 2.1 percent in the previous month and below market expectations of 1.9 percent. It was the lowest inflation rate since January 2017, mostly due to a slowdown in cost of electricity, gas and other fuels. Inflation Rate in the United Kingdom averaged 2.58 percent from 1989 until 2019, reaching an all time high of 8.50 percent in April of 1991 and a record low of -0.10 percent in April of 2015

Inflation Rate in the United Kingdom is expected to be 1.70 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, they estimate Inflation Rate in the United Kingdom to stand at 2.00 in 12 months time. In the long-term, the United Kingdom Inflation Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.
What is the Consumer Price Index (CPI) The CPI is a measure of consume…

Trustee Act 2000 – The Investment Policy Statement

What are Trusts for Trusts are set up for a number of reasons, including:

to control and protect family assetswhen someone’s too young to handle their affairswhen someone cannot handle their affairs because they’re incapacitatedto pass on assets while you’re still aliveto pass on assets when you die (a ‘will trust’)under the rules of inheritance if someone dies without a will (in England and Wales)
The main types of trust are:bare trustsinterest in possession trustsdiscretionary trustsaccumulation trustsmixed trustssettlor-interested trustsnon-resident trusts What is an Investment Policy StatementA requirement of The Trustee Act 2000 is that an Investment Policy Statement should be prepared for all trusts. This should have had a major impact on all those involved with the drafting or advisory work on trusts, particularly Trustees.Although the Trustee Act states that the investment policy statement should be prepared by the Trustees, in practice most trustees would struggle to produce …

Your Personal Finance Portal

If you have not registered for your Personal Finance Portal or do not know how to use it, please contact us immediately. To access the Portal simply visit our website.

For security reasons we would expect all clients to communicate with us through your Personal Finance Portal. We will now only ever send secure/sensitive information this way for example documents such as Financial Planning Reports, Annual Review Reports and Tax Reports.

Your Portal provides real-time valuations to your pension/investment plans and allows you to manually update your Bank Accounts/Deposits or NS&I plans. Another great feature is the ability for you to upload your documents to the portal and share them with us, which will automatically update our back-office systems. This is useful at review when we need HMRC correspondence, P60s, payslips, income/expenditure/assets/liabilities spreadsheets or other personal data.

Allen Tomas & Co Retirement and Later Life Events

Later this year Allen Tomas & Co will be hosting retirement and later life planning events at the recently completed Dersingham Village Centre. The purpose of these organised events is to improve the understanding in these complex financial areas and to help signpost the individual or business to the appropriate professional service.

The day will be at our expense and consist of presentations, food, drink and question & answer sessions. We strongly recommend you book your place once we confirm the dates through our newsletter, website/blog and journals.

Inheritance Tax relief for business property

Business property relief (BPR) is a valuable inheritance tax relief for business owners whether making a lifetime transfer or on death.
Key points
Business property relief is a valuable inheritance tax relief for business ownersBusiness owners may receive relief at either 100% or 50%, dependent on circumstancesBusiness property relief is available after an ownership period of two years
Types of property that qualifies Inheritance tax (IHT) legislation (IHTA 1984) provides relief for certain types of business or business property included in either a lifetime transfer or the deceased’s death estate. Relief is available for business property anywhere in the world.

For deaths and transfers, on or after 6 April 1996, the categories of property which are capable of qualifying as relevant business property are broadly as follows with rate of relief:

Property consisting of a business or interest in a business: 100% reliefControl holdings of unquoted securities in a company: 100% reliefUnquoted…

Apprentice Leah shines

On Thursday 3rd January 2019, Leah attended the Springwood High School’s Presentation Evening as a former Year 13 student. Upon arrival she received her A level certificates having obtained an A, B and B in Business, Economics and Sociology respectively. Due to her grades she was presented with a Norfolk County Scholar award created by the County Council for exceptional performance at A level. Furthermore, she was honoured to be the recipient of a subject award in Business, sponsored by Stephenson Smart Accountancy as well as receiving the Mark Griffiths Award for Endeavour.

Leah has settled in very well with the Company and we wish her well with her CII exams in March.

Director, Michael Crisp has successfully become a Fellow

Director, Michael Crisp has successfully become a Fellow of the Chartered Insurance Institute (CII). Fellowship of the CII is universally regarded as the premier qualification for those working in the insurance industry. By achieving the ACII, you have already demonstrated a high level of commitment, but the Fellowship shows that you have taken this commitment one step further. Acquiring FCII accreditation will further demonstrate your knowledge, experience and
professionalism to the world.

Michael is now talking about a Doctorate, but we feel it is probably best to enjoy the prestigious Fellowship title first!