The South West Legal Support Trust – Great Legal Bake Wednesday 27th February 2019

We are again supporting The South West Legal Support Trust with this years Great Legal Bake as well as raising money for Exeter Personal Support Unit which we are very proud to support. Our event again this year will be held on the ground floor of Exeter Combined Court Centre from 10.30am – 1.30pm and this year it will not just be about our delicious cakes because we will have some savoury items on offer.

We also have a draw with some fantastic prizes very generously donated to include a voucher for Rendezvous Wine Bar against their delicious menu and a fantastic hamper from Clear Property in Exeter. Please help us to raise some vital funds and we are happy for donations or entry to the draw. For further details contact our marketing clerk Lisa Lyons who will be delighted to assist you.

David Campbell acts as Prosecutor for A.C.T National Health and Safety Criminal Mock Trial

On Wednesday 13th February David Campbell acted as Prosecution Counsel for Compliance on Trial – Health and Safety  Criminal Mock Trial he helped organise with A.C.T National Ltd at the National Liberal Club in London.

The event was attended by over 70 delegates who became the Jury and were actively involved in the Judgment with the aim of this trial was to provide knowledge of the process when a criminal trial is brought to court.

It was not designed to teach law or how to conduct an investigation, but to provide a valuable insight into both the legal and prosecution process that are taken.

Being run by practicing criminal barristers, this event provides a very realistic view of the legal requirements involving working at height undertakings and the due diligence / liability process in utilising contractors.

The event closed with a discussion of the verdict and its implications, with opportunity to question the legal team and network with fellow professionals.

THE NEW RESIDENCE NIL-RATE BAND

THE NEW RESIDENCE NIL-RATE BAND

CHARLES COOPER CONSIDERS THE RESIDENCE NIL-RATE BAND AND TRANSFERABLE RESIDENCE NIL-RATE BAND FOR INHERITANCE TAX

Inheritance Tax is payable on the value of a deceased’s estate above a set threshold, referred to as the Inheritance Tax Nil-Rate Band (‘NRB’). Since 09 October 2007 it has also been possible to claim the unused NRB of a spouse or civil partner who died before them, referred to as the Transferable Nil-Rate Band (‘TNRB’). From 06 April 2017 there has been an additional Residence NRB (‘RNRB’) and a Transferable Residence NRB (‘TRNRB’), the legislation for which is set out at ss.8D-8M Inheritance Tax Act 1984 (as inserted by s.9 Finance (No 2) Act 2015).

The RNRB and TRNRB legislation is relatively new and untested. ‘Residence’ refers to any interest in a dwelling house that was the deceased’s residence, at some point in time, and that interest must be ‘closely inherited’ (inherited by a lineal descendant) on or after 06 April 2017 for the legislation to apply. Where the first spouse or civil partner died before 06 April 2017 then 100% TRNRB should be available on the second death. These reliefs are subject to tapering provisions, and allowance has been made for individuals who ‘down-sized’ before death.

A specific gift of residence to a spouse or child under a Will is obviously ‘closely inherited’, but most Wills just leave residue to a spouse or child either absolutely or in trust.

If the residence forms part of residue, it is to be regarded as closely inherited for the purposes of RNRB to the extent that the residuary estate is closely inherited. For example, where residue (containing a residence) is to be divided one half to a child and one half to charity, only half of the residence would be treated as ‘closely inherited’.

If the residue is left in trust to a spouse or child for their benefit during their lifetime (a ‘life interest trust’) it should be regarded as closely inherited, but not if left on discretionary trusts.

With the legislation now enabling a potential combined Nil-Rate Band of £900,000 (on current figures) on death, it is worth checking whether the full Nil-Rate Bands may be claimed.

February 2019

 

[Charles practised as a Solicitor and Higher Court Advocate before being called to the Bar, and specialises in tax, trusts, wills and probate.]