New research from Prudential has revealed that financial advisers are forecasting a sharp rise in demand for inheritance tax (IHT) advice.
The study found that around seven out of ten (69%) advisers expect demand from clients for advice on IHT planning to grow over the next 12 months, with 37% forecasting a significant increase.
However, 17% of advisers apparently feel that, due to regulatory changes, they are not sufficiently confident in advising on IHT issues and want to develop links with legal firms and other specialists.
Close to 60% of advisers say part of the increase in demand is being driven by new IHT rules that came into effect in April this year. The rules are complex, but comprise an additional £100,000 per person residence nil-rate band. This limit will increase each year and complements the standard nil rate band to provide a potential £1 million IHT allowance for a couple in 2020/21.
Increased access to pension savings as a result of Pension Freedoms and the ability to leave pension wealth to family as well as rising property prices are also major factors.
“Rising property and pension wealth are making it increasingly important for advisers to be able to help clients with specialist advice on IHT planning and demand for advice is booming,” commented Paul Harrison, Head of Business Consultancy at Prudential.
“One specialist area that is driving demand for IHT advice is enquiries about using trusts – more than half (52%) of advisers say they have seen a rise in enquiries about trusts for IHT planning,” he added.
For expert legal advice on inheritance planning and inheritance tax, then contact our specialist solicitors today.
from Latest blog entries https://www.adamslaw.co.uk/new/archived/demand-inheritance-tax-advice.html
New research has revealed that as many as 79,000 UK businesses (4%) would be unable to repay their debts if interest rates were to rise by even a small amount. This is almost four times the 20,000 businesses that reported being in this situation in September 2016.
The study, by insolvency and restructuring trade body R3, also found that 96,000 firms (5%) were just paying interest on their debts.
“UK firms have faced a challenging 2016 and early 2017: the sharp fall in the pound has made things difficult for importers, while a rising National Living Wage and the roll-out of pensions auto-enrolment have added to businesses’ running costs,” commented Andrew Tate, spokesperson for R3.
“Only paying the interest on debts is not necessarily a sign that a business is in distress: it may be that a company is taking advantage of low rates to invest in its operations or assets,” he added. “But only repaying the interest is also a common characteristic of a ‘zombie business’ – a business only able to keep going because of an ultra-low cost of borrowing and with little chance of survival.”
“The research shows that there are tens of thousands of firms currently walking a very tight line,” he said. “Rising inflation may also lead to a double-whammy for struggling businesses: it may increase the chance of the Bank of England raising interest rates, and it would undermine the consumer spending that has driven the economy over the last year.”
For expert legal advice on these issues, or other areas of commercial law, then contact our specialist commercial lawyers today.
from Latest blog entries https://www.adamslaw.co.uk/new/company-and-commercial-law/interest-rate-rise-problems-businesses.html
Theresa May’s announcement in April that there would be a snap general election on 8 June surprised many. It isn’t all about BREXIT and many will be pleased to learn that employment law proposals feature in many of the political parties’ manifestos, many focusing on an extension of worker’s rights. It is therefore appropriate and timely to have a look at the main parties’ individual employment law proposals as set out in their respective manifestos.
from Latest blog entries https://www.adamslaw.co.uk/new/news/employment-law-update-may-2017.html