Tax Planning and Trusts
Managing your tax liabilities is one of the most responsible things you can do for you, your family or your business. Preserving your hard-earned wealth to pass onto future generations and saving money through effective handling of income tax or capital gains charges can make a huge difference to your peace of mind and financial security.
Tax law, however, is dynamic and its rules can be complex and ever-shifting. Let our specialist lawyers guide you expertly through the opportunities, risks and regulations; providing sophisticated, tailored advice on inheritance tax planning, income tax assessment, capital gains tax, and non-domicile tax. Whatever the value of your estate, line of business, or personal situation.
Our team is also highly experienced in trust creation and compliance and can guide you knowledgeably through all the regulations in setting up and managing a trust.
From negotiation with HMRC to disposing of an investment property; get creative, trusted advice on the options open to you as an individual or as a business.
Information on our Services
Inheritance tax (IHT) can be an unpleasant burden for your loved ones after your death, costing them potentially thousands of pounds. However, with a bit of planning and sound advice, there are various reliefs and exemptions you may be able to use to reduce the amount of tax payable, and maximise the inheritance you pass on to the next generation.
Our experienced and highly respected IHT experts can provide guidance in all areas of inheritance tax planning: reviewing your affairs, calculating your likely exposure to inheritance tax, and suggesting steps you can take to reduce this liability in ways that suit your circumstances and priorities.
This can include regular gifts from your income, using your annual gift allowance, transferring assets into a trust, and clever structuring of wills. Our approachable team will guide you through all of this in plain English, as well as getting you to think about other things you might not have considered, such as handling care home fees: ensuring peace of mind for you and the best inheritance possible for your loved ones.
Capital Gains Tax
If you are considering disposing of an asset such as a second home or a business, this may well incur a charge to capital gains tax. Avoid any surprises by speaking to us beforehand, and we’ll provide trusted advice on ways in which charges might be reduced or avoided completely. We have many years’ experience in the disposal of all sorts of assets, be it by gift or sale, and can be trusted to make the process as painless as possible.
Do you sometimes suspect you are paying more income tax than you need to? We can assist with a comprehensive review of your circumstances then advise on where tax savings might be made.
Personal Tax Compliance
Annual income tax returns
Overwhelmed by the process of submitting your annual income tax returns? Let the HMG team assist in preparing and submitting your return, either on a one-off or ongoing basis. Our experienced advisors are registered with HMRC so can follow up on payment of tax and further tax liability if needed.
Found yourself needing to disclose something about your tax affairs to HMRC? Perhaps you’ve only just realised you should have reported something regarding income or capital gains tax, after the event. With years of expertise in this area, our lawyers can assist with your disclosure with minimum fuss, negotiating with HMRC until the disclosure is complete, and providing authoritative support throughout.
Dealing with HMRC as a non-resident
Are you resident abroad, but have income arising or taxable in the UK? We can assist with all the reporting requirements which arise – from annual tax returns to a particular tax disclosure, or informal correspondence with HMRC to agree a way forward.
Non-Resident Capital Gains Tax Charge
If you are not resident in the UK but are disposing of residential property here, a Non-Resident Capital Gains Tax Charge may apply to your transaction. A return needs to be made to HMRC and any tax due needs to be paid within 30 days of completion – a time-sensitive process that you need to get right. We can expertly and efficiently handle all the requirements, giving you complete peace of mind across the time zones.
Trust Creation and Management
Trust taxation is sophisticated, with trusts taxed in a different way to individuals, and varying depending on the type of trust. Trusts can sometimes be required to submit just one tax return for a particular income tax and capital gains tax event. They can also be liable to inheritance tax after a particular length of time or if a large sum of money is withdrawn.
Let our trust tax specialist guide you through, advising on the correct income and capital gains tax treatments, when and why tax returns are required, helping you prepare your trust returns if required, and advising on inheritance tax liability.
So you can relax safe in the knowledge that your trust is fully compliant and as tax-efficient as possible.
Good trust management needs properly maintained accounts, enabling accurate financial reporting, more efficient processes and reduced costs. Feel your time is at a premium? The HMG private client team can be relied upon to create and maintain your trust accounts on your behalf to the highest of standards, keeping you in the loop along the way.
Day to day trust management
Take away the legwork of managing a trust and hand it all over to us. We oversee a number of trusts on a day-to-day basis, handling their accounting, tax compliance, payment of income (where appropriate) and review of trust assets (as required). We also facilitate storage of trust documentation, annual trustee meetings and multi-disciplinary meetings with accountants or financial advisors – all tailored to your specific requirements.
Our team has extensive experience across all types of trust from bare trusts to discretionary trusts, and a wealth of sophisticated legal, accountancy and tax knowledge; giving you complete confidence that we’ll manage everything smoothly, and keep you informed on a regular basis.
We can even assist with appointment and retirement of trustees, or can act as professional trustees ourselves.
Or if you’re a trustee yourself, let us help manage some of your role, advising and assisting you in your responsibilities.
Setting up a new trust
Trusts can be an excellent tax-efficient option for anyone, whatever the size of their estate, saving loved ones time, money and paperwork. They are particularly useful if you have to provide for minors or vulnerable beneficiaries.
Our expert trust and estate practitioners can guide you seamlessly through the entire process of establishing a new trust, including advising on the selection of suitable trustees and preparing trust documents. Whilst we are not authorised to provide financial advice, we can discuss with you the options for investment of your assets from property to equities and insurance products. We can also assist with regulatory work required.
Trust regulatory compliance
There’s a lot of regulation involved in trusts, including registering the trust with HMRC (compulsory for all trusts under the Fifth Anti-Money Laundering Regulation 2020), and reporting to various other tax authorities under the Foreign Account Tax Compliance Act and the Common Reporting Standard.
We’ll cut through all the red tape for you, outlining your compliance obligations in plain English and assisting with your reporting either on a one-off or ongoing basis.