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The acronym ‘KISS’ (‘keep it simple, stupid’) refers to a design principle originating from the US Navy in 1960. However, it can sometimes be an apt principle in an inheritance tax (IHT) context!

Some taxpayers engage in sophisticated planning arrangements to reduce the possible IHT liability of 40% on their death estate. However, with a little forward planning, a relatively simple strategy can achieve significant results.
Mark McLaughlin highlights a relatively easy strategy to save inheritance tax over time. 

Husbands and wives or those in civil partnerships (included in the term ‘spouses’ in the rest of this article) will often seek to minimise the family’s tax liability by the efficient use of personal allowances and tax bands. 

One strategy for business owners who operate through a limited company might be paying dividends to their spouse. While this may seem straightforward, potential tax traps can lead to unexpected liabilities and scrutiny from HM Revenue and Customs (HMRC).
 
Richard Curtis considers potential problems when dividends are paid to spouses and civil partners.

VAT is generally not reclaimable on goods or services intended for personal use. If a business purchases items or services and uses them privately, it is considered a taxable self-supply, requiring the business to account for VAT on that private usage. 

Private use of business assets, such as phones or vehicles, normally requires accounting for output VAT unless the input tax is apportioned to take account of any private use. 

Andrew Needham looks at VAT recovery on goods and services that have some personal use and when output VAT is due on that private use.

At the November 2025 Budget, the Chancellor announced an increase in the tax rates applicable to income from property businesses and savings, which will apply from 6 April 2027.  

Kevin Read looks at the income tax rises coming in April 2027.

Some find it morbid to think about planning for their own death, so put off writing a will.

Tristan Noyes  looks at the impact of dying without a valid will and how that affects an individual’s inheritance tax position. 

At the end of the accounting period, it is not unusual to find that a director and shareholder of a closely-controlled company has overdrawn their directors’ loan account, resulting in a debit balance owed back to the company, with the ‘loan’ remaining unpaid.  

Jennifer Adams outlines the tax implications of an overdrawn director’s loan account at the end of an accounting period, and anti-avoidance rules designed to prevent misuse.

A trust is essentially an arrangement whereby the legal ownership is in the hands of one person, with beneficial ownership in the hands of another; the legal owner (the trustee) holds that asset as custodian for the beneficial owner (beneficiary). 

Chris Thorpe outlines how discretionary trusts can be used to gift assets tax-free.

The employment-related securities legislation deals with arrangements involving shares and securities provided by reason of employment where the full value of the employment reward provided to the employee is not included in the salary package and is charged to tax.  

Jennifer Adams considers the tax implications of shares in a family company being awarded or gifted to family members of employees. 

A sole trader looking to expand their business might be weighing up the ‘pros’ and ‘cons’ of a partnership or a limited company. They are very different, with not only very different tax consequences, but functions as well. 

Chris Thorpe looks at partnerships and companies and considers which business model might be best.  

Under the loan relationships rules for companies, debits on loan arrangements are not deductible for corporation tax purposes in some circumstances.

Kevin Read highlights a recent case concerning the loan relationship rules for companies. 

When HM Revenue and Customs (HMRC) opens a tax return enquiry, the natural reaction of most taxpayers is to speculate about the reason why their tax return has been selected. In fact, HMRC does not need an excuse to open a tax return enquiry; a small proportion of tax returns are simply selected at random. . 

Mark McLaughlin looks at whether a taxpayer can find out if an HMRC enquiry has been opened as the result of an accusation made by a third party. 

When considering the tricky matter of remuneration planning, there are two things to consider; the amount of remuneration, and what form it takes. 

Chris Thorpe looks at what to watch out for with regard to paying employees and directors.

Despite the reduction in National Insurance contributions (NICs) in Spring Budget 2024, more employees are paying tax at higher rates on their earnings due to the freezing of tax thresholds. Some may find that any pay rise or bonus attracts additional tax and NICs such that the net pay increase is minimal.  

Jennifer Adams looks at some alternatives to rewarding an employee with a pay rise or a bonus. 

Mark McLaughlin looks at company purchases of own shares and warns not to become too focused on the more difficult rules for capital treatment. 

A company purchase of its own shares from a shareholder is a popular ‘exit’ strategy when an individual shareholder is retiring, or a dissenting shareholder is departing.