BESPOKE BRIDGING LOAN

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INHERITANCE TAX

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Many   estates   in   the   UK   become   liable   for   Inheritance   Tax   (IHT)   settlement   no   later   than   the   end   of   the   six   month   after   someone’s   death.   The   deceased person’s   estate   must   pay   inheritance   tax   at   40%   tax   on   everything   above   £325,000   (the   individual   allowance   for   one   person:   twice   this   amount   for   a   married couple, payable after the second spouse dies). Clearly with the rapid rise in property prices over the last twenty years IHT bills are now commonplace and often very large. Whilst   there   is   a   provision   for   IHT   to   be   paid   in   instalments   on   items   that   take   time   to   sell,   such   as   property   or   a   business   there   will   of   course   be   further interest   to   pay   on   the   amount   of   tax   outstanding.   For   the   executors   and   those   that   stand   to   inherit   from   the   estate   a   bridging   loan   can   allow   HMRC   to   be paid off promptly ensuring the estate can, in turn, be realised at its full value. The   only   way   to   pay   the   IHT   bill   immediately   is   if   there’s   enough   cash   in   the   estate,   in   which   case   an   executor   can   arrange   for   a   direct   payment   from   the bank   where   the   money   is   held   to   HMRC,   bypassing   the   beneficiaries.   If   there   isn’t   enough   cash   available,   as   is   usually   the   case,   the   executors   can   either   pay the tax bill out of their own resources or, as suggested above, take out a short-term loan. A   number   of   specialist   bridging   lenders   are   well-used   to   offering   short-term   finance   to   pay   IHT.   The   assets   which   can   pay   off   the   loan   can   usually   be   clearly identified, having been valued for probate and terms can be obtained that suit the structure of the estate’s assets. Families,   and   family   assets,   are   seldom   straightforward.   Having   access   to   short-term   finance   can   certainly   take   the   heat   out   of   a   situation   which   could otherwise   cause   conflict   between   siblings.   A   typical   example   might   be   where   two   siblings   jointly   inherit   a   home   that   one   of   them   wants   to   live   in.   In circumstances   such   as   this   a   market   valuation   will   need   to   be   agreed   and   a   mortgage   potentially   arranged   in   order   to   buy   out   the   other   sibling.   Such scenarios   can   also   arise   around   a   family   business   and   it   can   even   be   the   case   that   one   or   more   beneficiaries   with   a   pressing   need   for   a   payout   push   for assets to be sold well below their full market value. Still unsure and need to explore your options? Why not consult an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record.   We   are   a   principal   lender   offering   a   range   of   loan   facilities   for   business   use   from £250K to £2.5M over periods from 3 to 24 months. Our loans are secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to   understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks   will   then tailor a solution that best suits your needs rather than their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506   Email: enquiry@centralbridging.co.uk   Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

Many     estates     in     the     UK     become     liable     for     Inheritance     Tax     (IHT) settlement    no    later    than    the    end    of    the    six    month    after    someone’s death.   The   deceased   person’s   estate   must   pay   inheritance   tax   at   40%   tax on   everything   above   £325,000   (the   individual   allowance   for   one   person: twice   this   amount   for   a   married   couple,   payable   after   the   second   spouse dies). Clearly   with   the   rapid   rise   in   property   prices   over   the   last   twenty   years IHT bills are now commonplace and often very large. Whilst   there   is   a   provision   for   IHT   to   be   paid   in   instalments   on   items   that take   time   to   sell,   such   as   property   or   a   business   there   will   of   course   be further    interest    to    pay    on    the    amount    of    tax    outstanding.    For    the executors   and   those   that   stand   to   inherit   from   the   estate   a   bridging   loan can   allow   HMRC   to   be   paid   off   promptly   ensuring   the   estate   can,   in   turn, be realised at its full value. The   only   way   to   pay   the   IHT   bill   immediately   is   if   there’s   enough   cash   in the   estate,   in   which   case   an   executor   can   arrange   for   a   direct   payment from    the    bank    where    the    money    is    held    to    HMRC,    bypassing    the beneficiaries.   If   there   isn’t   enough   cash   available,   as   is   usually   the   case, the   executors   can   either   pay   the   tax   bill   out   of   their   own   resources   or,   as suggested above, take out a short-term loan. A   number   of   specialist   bridging   lenders   are   well-used   to   offering   short- term    finance    to    pay    IHT.    The    assets    which    can    pay    off    the    loan    can usually   be   clearly   identified,   having   been   valued   for   probate   and   terms can be obtained that suit the structure of the estate’s assets. Families,   and   family   assets,   are   seldom   straightforward.   Having   access   to short-term   finance   can   certainly   take   the   heat   out   of   a   situation   which could   otherwise   cause   conflict   between   siblings.   A   typical   example   might be   where   two   siblings   jointly   inherit   a   home   that   one   of   them   wants   to live   in.   In   circumstances   such   as   this   a   market   valuation   will   need   to   be agreed   and   a   mortgage   potentially   arranged   in   order   to   buy   out   the other   sibling.   Such   scenarios   can   also   arise   around   a   family   business   and it   can   even   be   the   case   that   one   or   more   beneficiaries   with   a   pressing need   for   a   payout   push   for   assets   to   be   sold   well   below   their   full   market value. Still   unsure   and   need   to   explore   your   options?   Why   not   consult   an expert? Central   Bridging   are   bridging   loan   specialists   with   a   great   track   record. We   are   a   principal   lender   offering   a   range   of   loan   facilities   for   business use   from   £250K   to   £2.5M   over   periods   from   3   to   24   months.   Our   loans are secured on freehold property across England and Wales. Crucially   you   will   always   speak   to   a   decision   maker   who   will   take   time   to understand   you   and   your   situation   and   unlike   some   of   the   bigger   banks will   then   tailor   a   solution   that   best   suits   your   needs   rather   than   their own. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, Granary Wharf, Wharf Road, Burton on Trent, Staffordshire, DE14 1DU Tel: 03332 400 506  Email: enquiry@centralbridging.co.uk Web: www.centralbridging.co.uk Central Bridging is a trading style of Central Bridging Loans Ltd. Registered in England & Wales | Company Registration Number 07728274. Central Bridging is not regulated by the Financial Conduct Authority (FCA). All loans arranged by Central Bridging are non regulated contracts as defined under The Financial Services and Markets (Regulated Activities) Order 2001 and the Financial Service and Markets Mortgage Credit Directive Order 2015. © Copyright Central Bridging Loans Limited Privacy Policy
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INHERITANCE TAX

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KNOWLEDGE BASE

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