Those following the trend for buying overseas property need to be aware that HM Revenue and Customs have decided to increase their efforts to identify estates holding such property after concerns had been voiced about the amount of Inheritance Tax (IHT) that had been evaded. The Chancellor announced plans to apply a triple tax to trusts set up to enable beneficiaries to avoid inheritance tax.

It is estimated that around 250,000 British residents own properties overseas, and many are unaware that IHT still needs to be paid on these properties in the event of the owners death.

IHT is payable at 40% on the excess of the estate above £285K and is extremely difficult to avoid even if a former UK resident. IHT is payable by anyone UK domiciled and actual residence or not in the UK is pretty much ignored.

For any questions on inheritance tax please email Janice@stephen-hill.co.uk

New Age discrimination laws

New legislation came into force on Sunday 1st October concerning age discrimination in this country. The Employment Equality Age Regulation aims to protect against age discrimination in employment and adult education for people of all ages.

From the 1st October the following kind of discrimination will be illegal:

• Direct Discrimination

• Indirect Discrimination

• Harassment

• Victimisation

The new laws as a result of a European directive on employment  means that it is now unlawful to discriminate workers on the grounds of age, affecting rules on recruitment, training, promotion, redundancy, retirement pay and pension provision.

Examples of the changes you need to be aware of as an employer include when recruiting using the following phrases in your adverts: seeking “enthusiastic young staff” or “ we require a mature individual” if an applicant feels they have suffered because of their age will be able to take the case to the employment tribunal and the company may face a penalty where the fine is unlimited.

We advise all employers to read the following information if they aren’t already aware of the new legislation http://www.direct.gov.uk/Employment/

Tax protection scheme

It is almost time to re-new your tax protection subscription, which covers accountancy fees of up to £75,000 for additional work that will need to be carried out in the event of an enquiry. Before doing so, a few facts that you may wish to know:

• HM Revenue and Customs do not need a reason to open any kind of enquiry

• You could be selected at random even if there is no suspicion that you have underpaid tax or VAT

• Any one who completes a tax return could have an enquiry

Without subscription to the tax protection scheme you will personally be liable to cover all additional costs on your affairs!

For more information about the tax protection scheme please contact Joanna Love or alternatively email Cheryl@stephen-hill.co.uk for a newsletter outlining the tax protection scheme.

Quote of the week

"Coming together is a beginning, staying together is progress, and working together is success." 

Henry Ford