Spring 2009 Newsletter Content Oh for a little hindsight Can't pay, won't pay? Shock in Essex Car tax You signed it Don't be late Age before beauty? IHT and falling prices More paper Shopping around Less paper PAYE or not PAYE... Flat rate scheme A change of heart There are limits Do your duty Free lunch VAT a mess Dissatisfaction guaranteed Don't believe it! Too late Tax on tick £100 note Temp reminder

Too late It's well known that the best Inheritance Tax planning is to give money away and then survive seven years. If you do that, the gift has disappeared from the record and escapes tax. In a recent case, a woman put money into a bank account which she jointly owned with her brother-in-law. There was an understanding that the money was to go to his grandchildren - her great-nephews and nieces - when she died. However, an understanding was not enough for HMRC: she was still a signatory on the account, so it was effectively her money right up to her death. The 7-year clock never started running, and it was taxable in full. Joint accounts are usually owned by husbands and wives together, and there is then no problem with IHT because the survivor enjoys an exemption for the gift. A joint account with anyone else is not even treated as being 50% owned - it is 100% exposed to IHT in each person's estate, because each of them can spend the whole amount. If you have plans for your money after you go, it's a good idea to put them on a sound basis to keep the taxman out. We will be happy to advise you.