CHARDON Management, one of the UK’s leading independent hotel management companies, is anticipating growing interest in the availability of Business Property Relief, a valuable relief from inheritance tax, from investors and high net worth individuals.
Says a spokesperson: “With inheritance tax levied at 40 per cent on assets above the current nil rate band of £325,000, mitigating this tax is becoming an increasing priority for many. Business Property Relief can provide a reduction of 100 per cent in the net value of relevant property in a qualifying business for inheritance tax purposes.”
Nicola Taylor, director of Chardon Management, said: “Under Business Property Relief, property investors can employ us to manage their operations on their behalf, thereby avoiding inheritance tax liability.
“Given that this provides a relatively straightforward way of saving 40 per cent in death duty, we anticipate that many property investors will be seeking to explore this option. In order to qualify for Business Property Relief, companies must be fully operational and employ staff.”
The spokesperson contiinued: Business Property Relief reduces the value upon a transfer of certain types of business or business property by a specified percentage and is available for lifetime transfers or to relevant business property included in an individual’s estate on death.
“Whereas inheritance tax solutions involving gifts or trusts can take up to seven years to become effective, and generally involve losing control of the gifted assets, assets that qualify for Business Property Relief are exempt from inheritance tax after just two years, provided they are also held at the date of death.
“As business property assets do not have to be gifted away in order to benefit from Business Property Relief, it is also possible to retain control and continue to benefit from the value of the underlying assets and any income generated.
“It is also simpler than many inheritance tax solutions with no underwriting or tax structures required and, because investors retain control, they can continue to benefit from the value of the underlying assets in the future.
“Delivering the best in professional management for all types of hotels and health and fitness clubs, the firm provides hotel owners with a wide range of value-added services, including: site and brand selection; overseeing new builds and upgrades; managing brands and brand standards; recruiting, training and retaining talented and loyal staff; day-to-day in-house management; customer and employee satisfaction; sales and marketing activities; procurement; financial management; revenue management; capital expenditure management and health and fitness club management.”
For further information please contact Nicola Taylor at Chardon Management tel 0141 333 0545
Issued on behalf of Chardon Management by Liquorice Media tel 0141 561 4018 www.liquorice-media.com
Date 8th June 2012.
Notes to Editors
- In 2005 Chardon managed four hotels in Scotland, today it manages 35 hotels and seven health and fitness clubs throughout the length and breadth of the UK encompassing such leading global brands as Indigo, from InterContinental Hotels Group, Doubletree by Hilton, Best Western & Choice Hotels; Holiday Inn and Holiday Inn Express as well as many independent properties under their own unique brand.
- Chardon Management’s own brand portfolio comprises: La Bonne Auberge; Limelight Bar & Grill; Triangle Health and Fitness; Tri Health & Beauty and Hoteldeals.co.uk – all of which benefit its hotel owners.
- Respectful of how its hotel operations can impact the environment, recent years have seen Chardon Management review each area of its environmental responsibility, resulting in all its hotels being rated as ‘Going Green’, a recognised body in the green grading system.
- Chardon Management employs 50 staff directly whilst its portfolio of managed hotels employs circa 2000 staff. The turnover of its managed hotels portfolio is £163 million. It intends to expand its portfolio by 20% per annum by actively seeking further hotel management contracts with developers, investors and administrators.
- Indeed, it is presently in negotiations with a number of investors/hotel developers to manage a number of UK hotels in key locations and has six new hotels scheduled to open over the next 12 months.