Why holiday homes are a key consideration in inheritance tax planning
Inheritance tax is a complicated area, and many issues can impact on it. However, particularly tricky situations can emerge in relation to property – and holiday homes in particular.
Owning a holiday home can be one of life’s real joys. It can offer an escape from your daily routine and give you a chance to refresh and recharge. However, if you are looking at inheritance tax planning, it is important to think about how you intend to handle it.
Inheritance tax planning for holiday homes
For instance, if you are planning to give a holiday home away as a gift, you will need to consider the rules around the area. As GOV.UK explains, if you give something away but still get a benefit from it, this will count towards your estate. This is known as a ‘gift with reservation’ and the site points to the example of a holiday property – in this case, a caravan. It explains that if you give it away but still use it for free, it would be a gift with reservation.
There is clearly lots to consider in relation to this issue, so advice is vital. However, you should also remember that you are not alone if you do face problems.
For instance, our inheritance tax loan can help people with estates when there is a liability to pay but no funds to hand. We can also provide this support when overseas property is within the estate.
Dicky Davies, Director of Business Development at Tower Street Finance, said: “Property of all kinds is a crucial issue to consider when it comes to inheritance tax, but issues can easily arise.
“However, help is at hand. Our aim is to help people get access to vital funds sooner, including through our inheritance tax loan product. If you need financial support, please get in touch to learn more about the options available.”
Find out more at about our Inheritance Tax Loan product or call us on 0343 504 7100.