Like most people you may be thinking about planning for not only your future but for also your loved ones. Inheritance tax (IHT) is payable on a person’s estate when they die, and certain measures can be taken during an individual’s lifetime to avoid this ‘death tax’.
Making gifts during your lifetime can be a simple and effective way of mitigating any IHT liability. Most gifts made more than seven years before death will escape tax, so with advance planning you can make the most of these ‘tax free gifts’. We can advise you which gifts will qualify and any conditions that must be satisfied.
In some circumstances, trusts can provide an effective means of transferring assets out of an estate whilst still allowing the donor to retain an element of control over the assets, providing that the donor does not continue to enjoy these assets. IHT applies to many transfers into trusts, but foreign domiciled taxpayers are still able to protect overseas assets from IHT through the use of Trusts without charge.
Relief and Exemptions
Full relief applies to anyone in relation to qualifying business or agricultural assets and our team can help you utilise the relief’s available using a variety of planning ideas to suit you and your circumstances and aspirations. This advice can then be monitored and updated as you and your affairs evolve over time. We can also guide you through changes in the 2013 Finance Act that seek to deny IHT relief for loans taken out by hard working innocent taxpayers for investment in their business.
Any plan must take consider the effects on your Will in order to ensure your wishes are carried out after death. Whilst Jeffcote Donnison does not provide a Will writing service, we can work with you to find a suitable provider from our range of expert contacts.