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This website contains information which may or may not be applicableto your own situation and circumstances.

Any information or advice on this site does not constitute a personal recommendation. If you have any doubts as to whether a product or service is suitable for you, please seek independent advice.

Strategies for beating the taxman

Inheritance tax only considerations

Write a will!

Having a will does not in itself make any difference for tax purposes, but it does ensure that whoever you want to get your assets will get them.

If you want to leave money to your favourite charity, you should say so in your will. Otherwise no one will know what your wishes are.

If you have complex affairs you should seek appropriate advice. Most solicitors provide will-writing services and for around £100-250 you get complete piece of mind.

Gifts before Death

Make sure you use your exempt allowances wherever possible, including regular payments from regular income!

FACTUALITY: A gift between spouse or civil partners who are both UK domiciled is IHT free and can also be done after death. However, this should still be planned, as the balancing of an estate and gifts to third parties is one of the best ways of relieving IHT.

Potentially exempt transfers

Gifts made during a person's lifetime in excess of exempt gifts are known as Potentially Exempt Transfers (PETs).

Most gifts are exempt from inheritance tax as long as they are made to individuals more than seven years before your death.

If you want to give something away in terms of ownership but carry on using it, this may not be considered as a gift for IHT purposes and it will be taxed after your death as though it hadn't been given away at all.

Contrary to popular belief you can give away a lot more than the Nil rate Band (0% tax) and not have to pay tax on it, as long as it truly is a gift, and as long as it is to an individual. You can also gift to a charity or political party for example.

Lifetime transfers

Lifetime transfers are those gifts which are not PET’s. If you were to gift more than the nil rate band to a TRUST for example then you may well end up having to pay tax at the rate of 20% on everything above the nil rate band. However, this may still be better than keeping the whole amount in your estate and having to pay 40% on the whole amount rather than just an excess charge.

These also are assessed over the previous 7 year period to see whether they fall inside the estate.

Business relief’s

There are a number of Business relief’s that are available to everyone who has business assets. If you do not have business assets you can buy them to take advantage of the relief’s, they may just be simple investment choices!

Other relief’s

We could write here about Woodland relief and Agricultural relief but understanding these relief’s (which we do) are only part of the issue. You then have to be able to invest in them to take advantage or actually already be a landowner. Either way you will require complex advice and you should contact us.