Da Vinci owed
Manisty, Edward
Da Vinci owed - 2006 - Taxation 157(4055) 27 April 2006, 104-106(3) .
Examines the preparation and negotiation procedures, challenges and requirements involved in chattel rents. Inheritance tax savings can be obtained from giving away chattels and renting them back. For example, a person may decide to give the contents of their estate to a family member, but continue to reside there, whilst still enjoying their former personal property. Two advisory steps should be taken: the first is to consider the immediate tax implications of such a gift. If the chattels had been exempt from tax in the past, then any capital gains tax must be considered. The second step is to ensure an effective gift of the chattels to the donee, either by delivery or by way of deed of gift or declaration of trust.
Da Vinci owed - 2006 - Taxation 157(4055) 27 April 2006, 104-106(3) .
Examines the preparation and negotiation procedures, challenges and requirements involved in chattel rents. Inheritance tax savings can be obtained from giving away chattels and renting them back. For example, a person may decide to give the contents of their estate to a family member, but continue to reside there, whilst still enjoying their former personal property. Two advisory steps should be taken: the first is to consider the immediate tax implications of such a gift. If the chattels had been exempt from tax in the past, then any capital gains tax must be considered. The second step is to ensure an effective gift of the chattels to the donee, either by delivery or by way of deed of gift or declaration of trust.