ASHES TO ASHES

Sitting in the Chappell stand at the Adelaide Oval on Day 5 of the Second Test between England and Australia, your correspondent was looking forward to seeing Messrs Bell and Cook steadily defy the Australian bowlers.  The match was seemingly moving towards the inevitable draw and the modest crowd of 3,500, mainly English, could at least re-establish some self-respect after the debacle of Brisbane in the First Test.

The dramatic mid-morning collapse of 4 wickets for only 8 runs transformed the situation and by mid-afternoon, over 20,000 exuberant Australians had swelled the crowd as Warne, Hussey, Ponting and co put England to the sword.  The Ashes dream was almost over.

The sudden transformation of the match vividly illustrated the uncertainties of sport and life in general and the importance of being prepared for any eventuality.  The Australian media, delighted at the opportunity to “Tonk a Pom”, made depressing reading on the sports pages.  However, the financial pages offered a reassuring familiarity.  Apparently, “simpler super reforms” of their tax system take effect from 1 July 2007, and residents are urged to “stand up and act now or they could miss out on lucrative tax savings, caused by lack of attention to correct estate planning”.

At least we have some things in common with our cousins down under – apart from a committed, talented, well-prepared, successful cricket team!

As we have pointed out in recent articles, it is more important than ever to keep on top of your will and inheritance tax planning arrangements, particularly since the introduction of the UK Finance Act 2006.

Under the present rules, once an estate exceeds £285,000, inheritance tax has to be paid on the value of assets above that level.  This tax is set at a flat rate of 40%.

So what can you do to legally avoid or minimise the impact of current legislation?

The answer is to take some advice from a suitable expert in tax planning, such as Sandersons, Solicitors, whose expertise in this field has been developing for more than 20 years.

For a couple with a joint estate of £500,000, Sandersons can help you (perfectly legally) to avoid all inheritance tax.

Its approach is to deal fairly with both its clients and with HM Revenue and Customs which avoids undue confrontation and costs, while legitimately saving clients substantial amounts of tax.

Sound planning and preparation are the key to any successful campaign and Sandersons can apply their specialist advice in a number of areas including:

Capital gains tax planning, from buying property to selling a business;

Income tax planning, where they have a number of schemes for higher earners;

Tax planning through trusts;

Advice on foreign jurisdictions; and

Tax emigration and offshore tax planning.

Whilst Sandersons, Solicitors may not be able to regain the Ashes, they can certainly help reduce your taxation!

So, if you want to receive sound, friendly, professional advice on any of these issues, contact Geraldine Martin on 01482 324662 or e-mail gmartin@sandersonssolicitors.co.uk.

 Source: The Journal, February 2007