Aberdeen tax expert says get married and ‘gift, gift, gift’

An Aberdeen tax specialist is recommending people get married and gift assets early in the wake of the UK’s Autumn budget.

Graeme Cran, associate director at Azets, said more individuals now need to make tough decisions early in response to Chancellor Rachel Reeves’ new tax rules.

The tax expert said holding onto assets to death was not a consideration.

“Get rid of it before it’s too late,” he said.  “Gift, gift, gift.

“The primary consideration of what’s changed is that individuals, to avoid inheritance tax, will have to make tougher decisions earlier than they have done.

“Because if you don’t there’s no point in paying 40% inheritance tax if it was going to go to the children anyway. You need to think about it earlier.”

Aberdeen tax expert says getting married ‘hugely valuable’

And he said marriage was often a good move financially speaking.

“If individuals are effectively man and wife without the formalities, then they lose out on a significant ability to plan or to benefit from the tax allowances and reliefs that are available,” he added.

“They will have real problems from a tax planning perspective.

“Get the paperwork. Because it’s hugely valuable. Simple as that.”

Graeme who works with high-net-worth clients said typical tax planning has been flipped on its head by new budget changes.

And he has been inundated by wealthy north-east clients who have suddenly found their businesses exposed to hefty tax bills in the event of their death.

“The goalposts have been moved on a lot of people,” said Graeme. “I just spoke with  clients who own a very successful business worth £25 million.

“While they have inheritance tax on their house and their cash they knew their business was protected. That has completely changed by reason of the budget.

“Now they have potentially got a £4m exposure on the business. Whereas three weeks ago they had nothing.”

Budget rule changes are substantial

Meanwhile, the Aberdeen tax expert who joined Azets in October, said many people will now be looking to change their wills.

“These rule changes are substantial and they impact so many people,” he said.

“There’s a lot to do. You need to review and you need to assess. Understand your exposure and plan. We will all die at some point.”

His advice is to gift and spend that hard-earned cash.

“Gift it. Do it early, do it often,” he said. “Think about what is surplus to your requirements and pass it on.

“Spend it. It’s the best option. There are so many clients you see with money they are never going to touch. Enjoy it, spend it, you’ve worked hard for it.”