An individual dies leaving a surviving spouse and son. His only assets are bank accounts and quoted investments valued at £1m all held in joint names with his spouse. His will is equally simple: £325,000 or such lesser amount as is available in the estate passes to the son, and the balance to the spouse. How much does the son get?
Mooney said he initially mis-read the question and opted for the wrong answer. Good explained that this is not a tax question, but in fact a probate question: “If all of the assets are held in joint names, with the deceased and surviving spouse as joint owners, then all of the assets passed by survivorship and are outside the estate. So there is nothing in the estate in which case the son gets anything.”
Mooney added that when we look at estate planning we can’t just look at the tax.
Watch the video clip below for the full answer and the following tax treatment.
The second part of the December video looks at two questions on personal allowances for non-residents.
The first of the two, posted by Dowland, asks if an individual resident for tax purpose in Canada, and not resident in the UK for tax purposes, is entitled to claim the personal allowance in the UK under the terms of the UK/Canada DTA.
Good said they can claim the personal allowance, and explains why this is relatively straightforward in the clip below.
The second of two on this topic, posted by Jan CM, explains how a non-resident landlord approached them about the tax on his rental property and that he hadn't paid any yet for the period he had been a NRL.
“As far as I am aware he should be entitled to a personal allowance, as a UK citizen, but do we need to complete any paperwork in order to claim the personal allowance (i.e. R43) or is it assumed that it is available? If we need to complete an R43, when did this come into force?” they asked.
Good and Mooney have produced a TAXtv special covering the main points from the Autumn Statement. To receive a free copy of the 30 minute programme, email [email protected] with the subject heading ‘Autumn Statement’.
For the latest episode of TAXtv visit PTP Interactive. TAXtv is a monthly tax update programme available as an annual subscription from £199, (11 issues plus special editions) to view online, download from the internet or watch on DVD.