Paying your Inheritance Tax bill
You have inherited some or all of an estate which includes a pension which holds an investment property.
You are now faced with a tax bill worth 40% of the value of the pension, including the property.
This tax bill must be paid within 6 months or will incur penalties.
You may have a complicated set of decisions to make:
- should you sell any of the pension's liquid assets (stocks, funds, bonds) to the tax liability?
- are there enough liquid assets to pay the bill and what will be left?
- what if you're only left with the property, are you happy with that or would you rather have liquid assets?
- do you have a family business which is operating from the property?
- are you involved in the business and, if not, how do you feel about being its landlord?
- can the business buy the property?
- does the business want to tie up cash and capital buying the property?
We understand how difficult and complicated this situation is and have developed a range of options to help.
We will solve this headache in 90 days
Sell your property outright
Our specialist fund will buy your property
You can sell the property and use the proceeds to pay your tax bill, keeping whatever is left to use or invest.
Your inheritance tax bill relating to the property is paid.
No worries about HMRC dealings or penalties or ongoing interest charges.
Problem solved.
We will buy your property.
If your family's trading business operates from your property, our specialist fund will offer covenants to ensure the business can continue to operate from the property.
Mortgage the property
We will lend you the funds to pay your tax bill as a mortgage
You can borrow against the value of the property and use the funds to pay your IHT bill.
Your inheritance tax bill relating to the property is paid.
No worries about HMRC dealings or penalties or ongoing interest charges.
You keep the property and any income it generates
Problem solved.
We will lend you the money to pay your tax bill (either as a mortgage or a bridge loan).
Sell the property to your family's business
You can sell the property to your family business and use the proceeds to pay your tax bill, keeping whatever is left to use or invest.
We will finance your family business' new property company's purchase of your building
Your inheritance tax bill relating to the property is paid.
No worries about HMRC dealings or penalties or ongoing interest charges.
You keep the property and any income it generates
Problem solved.
We will lend your business' Prop Co the money to buy the property from the pension (either as a mortgage or a bridge loan).
We can also provide money for the equity portion to facilitate the mortgage transaction.