BESPOKE BRIDGING LOAN

& SHORT TERM LENDER

INHERITANCE TAX

LOANS

KNOWLEDGE BASE

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   £50M   over   periods   from   3   to   24   months.   We   can   also   offer   medium-term   Base   Rate   Tracking   loans   from   2-5   years   duration.   Our   loans are secured on freehold property across England and Wales. You will always speak to a decision maker who will take time to understand you and your situation. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, 34 Queen Anne Street, London, W1G 8HE 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   £50M   over   periods   from   3   to   24   months. We   can   also   offer   medium-term   Base   Rate   Tracking   loans   from   2-5 years   duration.   Our   loans   are   secured   on   freehold   property   across England and Wales. You    will    always    speak    to    a    decision    maker    who    will    take    time    to understand you and your situation. For a confidential discussion in the first instance contact us on:   Tel 03332 400 506   Email enquiry@centralbridging.co.uk Online
Central Bridging, 34 Queen Anne Street, London, W1G 8HE 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

LOANS

KNOWLEDGE BASE

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