Paying less in inheritance tax
The basic rules

Make a will. A will is crucial for anyone wanting to protect their family from a huge headache after they die but they also remain by far the best IHT avoidance tools.

Give money away. You can make gifts to anyone of £3,000 a year free of IHT.

Passing assets between spouses and civil partners. One of the main tax advantages of marriage or civil partnership is that spouses and civil partners are allowed to pass as much as they want to each other on death without incurring IHT.

Discretionary will trusts. By using a discretionary will trust the amount these couples can pass on to beneficiaries such as children or friends can be increased to £600,000 under today's tax limits.

Invest in non-quoted shares. Shares listed on the Alternative Investment Market, as well as shares in privately owned companies, are free from IHT if held for two years.

Make regular gifts from income. If your income exceeds your normal expenditure, you can use the excess to make gifts free of IHT, provided that you commit to doing so on a regular basis.

Discounted gift trusts. These allow you to take capital from your estate straight away, while retaining the ability to receive income from it.

If you would like to find out more, please email or contact us for further information.

This article is for your general information and use only and is not intended to address your particular requirements. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without appropriate professional advice after a thorough examination of their particular situation. Your home may be repossessed if you do not keep up repayments on your mortgage.

Article date: 09.07