Latest news with #HMRC
Daily Mail
14 hours ago
- Business
- Daily Mail
The innocent inheritance tax blunder that can cost your family dearly
Hundreds of bereaved families are being hit with unexpected inheritance tax bills after falling foul of rules around making gifts. Some 220 estates last year received a tax bill on £61 million worth of gifts given away incorrectly, according to HMRC data obtained by a Freedom of Information request by TWM Solicitors. More families could unwittingly breach the rules and be hit with unwelcome charges as they try to avoid inheritance tax. People making gifts slip up when they hand their loved ones assets, such as property, valuable artwork or fine wine, but still have use of them. This is known as Gifts with Reservation of Benefit – and the taxman treats them as if they have not been gifted at all. For example, a parent might give the family home to a child, which can be done tax-free as long as they live for seven years afterwards. However, if the parent then continues to live in the property they must pay rent at the market rate, or it will be considered a Gift with Reservation of Benefit because they are continuing to use the asset as though it is their own. If they fail to do this, HMRC does not consider it to be a proper gift and, when they die, it will then be taxed as though it is still part of the estate. Another example might be to give away a classic car, but then continue to keep it in your garage, or to gift a holiday home but still make use of it on a regular basis without paying a market rate. Duncan Mitchell-Innes, partner at TWM Solicitors, says: 'Making gifts is now one of the simplest ways of reducing an IHT bill, however many people are making mistakes in the process. Taxpayers should realise that simply handing over legal ownership of an asset isn't enough to satisfy HMRC.' Taxpayers paid a record £8.5 billion in inheritance tax in 2024-25 and £1.5 billion in the first two months of this tax year alone. Currently about 5 per cent of estates are liable for inheritance tax but more are being caught in the net as the thresholds at which IHT kicks in remain frozen but inflation pushes up the value of investments, property and assets. It is expected that the proportion of estates liable for IHT will rise to 8 per cent from 2027, when pensions are brought into the inheritance tax net. For many people, a pension is their most valuable asset, and this change in rules could tip them over the inheritance tax threshold. Kirsty Stone, chartered financial planner at The Private Office, says: 'We have seen a massive inflow of enquiries around inheritance tax and gifting since the pension changes were announced. 'A lot of people might think that giving away their home seems like a quick fix, without realising the intricacies of the rules.' Shane van Rossum, a retired school registrar, hoped to pass her pension pot to her daughter after she dies, but has had to change her plans since the Autumn Budget. Since the announcement that pensions would be liable for inheritance tax, she has started taking regular amounts from her pot to reduce its value and mitigate any future inheritance tax bill. 'I feel that I've worked hard to save money and I don't want it all taken away,' says Ms van Rossum, who retired ten years ago and lives in Fulham, west London. 'I'm not trying to avoid inheritance tax, but I want to be savvy about what I do.' She uses her annual £3,000 gifting allowance and also gives regular amounts to her family out of her surplus income. 'I really did my research first and I make sure to keep accurate records of any gifts,' she says. 'If you want to leave money you need to be really sure about what you're doing, and do your best to ensure that your family will get the best benefit from it.' You can make gifts out of income that you don't need so long as they are regular and come from income rather than assets.
Daily Record
18 hours ago
- Business
- Daily Record
EastEnders' Martine McCutcheon declared bankrupt
Martine McCutcheon has been declared bankrupt after a petition was filed for insolvency over a debt to a finance company, official public records reveal. EastEnders star Martine McCutcheon has encountered further distress a year on from her separation from husband Jack McManus. The 49 year old actress has been declared bankrupt following a petition for insolvency due to a debt owed to a finance firm, official public records indicate. This comes after she was compelled to reduce the asking price of her beautiful Surrey home. A court document reveals that the insolvency order was issued on 31 March this year, just a few months after her announcement of her split from Jack, her spouse of 18 years. Martine and Jack are parents to their 10 year old son Rafferty. The bankruptcy ruling, registered under her married name Martine McManus, was granted in March at the County Court in Guildford, subsequent to a petition lodged by a company named LDF Finance. However, Martine's company, Raven Music Ltd, was also liquidated last month, a move initiated by HMRC, due to unsettled tax bills, reports the Mirror. The most recent accounts reveal that the business had an outstanding tax bill exceeding £175,000, due within the 12-month period following February 2022. However, the total amount of Martine's personal tax bill remains undisclosed, and it is yet to be determined whether the Official Receiver will request a public examination of her bankruptcy, which would disclose her financial situation. Despite facing bankruptcy, Martine has kept her spirits high and hasn't let the strain show publicly. She recently shared a joyful day out with her son, Rafferty, and their pet dog on social media. Addressing her 635,000 Instagram followers, the ex-EastEnders actress expressed: "Wow... I needed this more than even I thought! I love being by the water.." She continued to share her appreciation for the UK's beauty spots, especially in good weather: "The UK has SO many beautiful places and in the sunshine, it really does take some beating, doesn't it? This is us on Hampton Court River.... We booked a boat, and took a little picnic, and it was gorgeous! ! Where do you love to go to in the sunshine months? I would love to hear your thoughts for our next little excursions in the summer!" However, this isn't Martine's first encounter with financial woes. Despite previously having a fortune estimated at £2million, she faced bankruptcy in 2013 due to debts totalling about £187,000, including a hefty £150,000 owed to HMRC. Remarkably, just a year after her bankruptcy, Martine was discharged and returned to financial stability. She and her now ex-husband splashed out an astonishing £1.3million on their former family home in Surrey only three years prior. Last year, the pair announced their separation after a marriage of 18 years. Announcing their separation on social media, she stated: "After much thought and consideration, Jack has decided it's best for us to separate after 18 years together and I accept his decision." She went on to express her well-wishes: "I continue to send Jack, all the love, luck and happiness for the next chapter of his life." This news came just a few weeks after they put their £1.5million home up for sale.
Daily Mirror
a day ago
- Business
- Daily Mirror
Getting his teeth done in Turkey was 'worst mistake' - now he owes £100k
A self-employed scaffolder who forked out thousands for botched Turkey teeth has been issued a hefty penalty for evading tax payments, it has been revealed A Welsh scaffolder who previously complained about his Turkey teeth has now been exposed as a tax cheat. Matthew Bowen, from Rhondda Cynon Taf, dodged £103,408 in tax, according to HMRC's latest list of deliberate defaulters. The self-employed man was repotedly slapped with a hefty fine of £66,956 by HMRC for evading tax payments from April 2018 to April 2024. Last year, we covered his story about his botched dental procedure in Turkey, which he branded "the worst mistake" of his life after shelling out £14,000 on the operation, travel, and accommodation, only to claim his new teeth began to "fall apart" within weeks. The 36-year-old, residing in Bryntirion, Ynysboeth, Abercynon, told Wales Online over the phone this week that it was the first he'd heard of his tax evasion. However, the publication reports that this claim doesn't add up with HMRC's procedures, which involve giving each defaulter the opportunity to dispute the publication of their details before they're listed. He promised to return their call within half an hour but failed to do so. Upon contacting him the following day, he said: "I dunno what to say to be honest. I've been trying to contact HMRC but I'm on hold. If I thought I done wrong I wouldn't be trying to ring them." In the title's previous conversation with Mr Bowen regarding his dental disaster, he shared that he had worked tirelessly, 12 hours a day, seven days a week, for two years prior to his January 2023 operation in pursuit of a "perfect smile". Did his aspirations lead him to twist the truth with his tax returns? "No," he said, denying tax evasion or knowing about HMRC's concerns. Last year, Mr Bowen revealed his dental troubles started aged 19, when he sustained a broken jaw from an assault in Tesco. "All my teeth started crumbling after that," he explained. The crowns he wanted were not covered on the NHS and getting them fitted privately in the UK would have cost him £27,000, he said. When a friend from Turkey recommended a clinic in his home country, Mr Bowen flew out to Marmaris for a £7,800 operation. Mr Bowen had 18 teeth taken out and 12 metal implants inserted into his jawbone, topped off with porcelain crowns. However, he claimed that the crowns began to disintegrate within weeks, prompting him to return to the clinic in August 2023 for further unsatisfactory treatment. "I've got a big gap from my gums to my teeth," he claimed last year. "You can see all my saliva coming through the tops of my teeth." The dentist responsible, Dr Aras Selcuk, defended his work at the time, asserting: "This is the only patient with problems so far. Everyone is happy, only this guy is not... I told him the saliva between the gum and the teeth is normal." In our initial conversation, Mr Bowen mentioned he was working long hours to save up for another operation to achieve the smile he desired. Asked recently for an update on his dental situation, he simply stated: "They're the same." Individuals or businesses land on HMRC's list if they've deliberately failed to pay over £25,000 in tax. HMRC asserts that the purpose of this list is to "influence behaviour by encouraging defaulters to engage with HMRC". After a year, the names of these defaulters are wiped from the record.
North Wales Live
a day ago
- Business
- North Wales Live
Getting new teeth in Turkey was 'the worst mistake' of his life, but now he owes £100,000
A man who spoke about his regrets after getting his teeth done in Turkey has now been named and shamed as a tax cheat. Matthew Bowen evaded £103,408 in tax according to HMRC's latest list of deliberate defaulters. The 36-year-old self-employed scaffolder from Rhondda Cynon Taf, has been handed a penalty of £66,956 by the taxman for dodging payments between April 2018 and April 2024. Last year Walesonline reported on his experience of a dental operation in Turkey, which he described as "the worst mistake" of his life having spent £14,000 on the surgery, travel and accommodation - only for his new gnashers to allegedly start "falling apart" within weeks. Mr Bowen, of Bryntirion in Ynysboeth, Abercynon, told Walesonline the phone call from them was the first he had heard about his tax evasion. But this does not tally with the procedures of HMRC, which says it gives each defaulter a chance to argue why their details should not be published before they appear on the list. He said he would call them back in half an hour but did not do so. The next day they rang him again and he said: "I dunno what to say to be honest. I've been trying to contact HMRC but I'm on hold. If I thought I done wrong I wouldn't be trying to ring them." When they spoke to Mr Bowen for last year's piece on his dental woes, he said he worked 12 hours a day, seven days a week, for two years leading up to his January 2023 operation because he craved a "perfect smile". Did that dream push him to twist the truth with his tax returns? "No," he replied, denying he ever dodged tax or knew about HMRC's concerns over his filings. Speaking last year, Mr Bowen said his dental issues began aged 19 when he sustained a broken jaw from an assault in Aberdare's Tesco supermarket. "All my teeth started crumbling after that," he said. The crowns he wanted were not available on the NHS and getting them fitted privately in the UK would have cost him £27,000, he said, but after a recommendation from a Turkish friend he opted to go to a clinic in Marmaris for a £7,800 operation. Mr Bowen had 18 teeth removed and 12 metal implants inserted to his jawbone, before having porcelain crowns fitted. But he claimed they were "falling apart" within weeks of being put in, so he returned to the clinic in August 2023 for another operation, which again left him dissatisfied. "I've got a big gap from my gums to my teeth," he said last year. "You can see all my saliva coming through the tops of my teeth." The dentist, Dr Aras Selcuk, stood by his work, telling us: "This is the only patient with problems so far. Everyone is happy, only this guy is not... I told him the saliva between the gum and the teeth is normal." In our original interview Mr Bowen said he had been "working so many hours" to save for a new operation to finally get the smile he wanted. This week, when we asked if there was an update on his teeth, he replied: "They're the same." A person or business appears on HMRC's list if they have intentionally defaulted on more than £25,000 in tax. The authority says the list is intended to "influence behaviour by encouraging defaulters to engage with HMRC". Defaulters' details are removed from the list after 12 months.
Sky News
2 days ago
- Business
- Sky News
Tax, interest rates and water
Sky News can exclusively reveal that accountants advising people who entered into a tax avoidance scheme, which was later found to be illegal by HMRC, were being paid a commission. Gareth Barlow speaks to a tax specialist about this. We also hear about new data on water firm pollution incidents, interest rates and streaming giant Netflix's revenue forecast.
