Top 5 tips for reducing your IHT bill
By Will Grahame-Clarke, 19 Jun 18
With HM Revenue & Customs’ take from inheritance tax climbing steadily, Canaccord’s head of wealth planning gives his top five measures to mitigate its effect.
4. Set up trusts – this is important if you want to keep control of your capital. Some trusts pay a fixed level of income, while others can offer your beneficiaries additional benefits.
5. Look into specialist investments – with some UK companies, your investment can be IHT exempt after only two years, rather than seven. This is a higher-risk approach and won’t be suitable for everyone but you don’t have to give any assets away and you have ongoing access to your capital.
Tags: IHT
Christopher Lean says:
Life assurance provides funds to pay IHT, it does not reduce it. And it needs to be set up in trust or it will exacerbate the problem.
Placing funds in trust(DGTs and certain pensions aside) do not reduce IHT liabilities straight away, there are issues like PETs and the periodic charge to consider.
Use of Inter-Vivos plans on gifts and PETs could also be considered.