Background

We were approached by a new client who was about to sell a large amount of land for development which would lead to a significant tax liability.

He decided to appoint Murray Smith based on our reputation for advising land owners based in Cheshire.

The solution

Murray Smith’s tax experts produced detailed Capital Gains calculations making sure that we had identified all the possible expenditure which could be offset against the gain and had taken advantage of all the available reliefs.

We then advised the landowner that the cash that he would hold following the sale would be subject to Inheritance Tax at 40% if he passed away. We carried out a review of his full Inheritance Tax position and set out options for protecting his estate.

One of Murray Smith’s financial advisers suggested moving some of the cash into investments which have been designed to offer protection from Inheritance Tax using Business Property Relief.

Result

The new client minimised the Capital Gains Tax on his land sale and then rearranged his investments to give him better protection from Inheritance Tax.

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