This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

How Can I Reduce my IHT Liability?

sigmund
Posts:82
Joined:Mon Nov 02, 2009 10:03 pm
How Can I Reduce my IHT Liability?

Postby sigmund » Wed May 27, 2015 2:14 pm

Are there any other ways of ACTUALLY reducing liability to IHT other than using PETs, the £3000 annual exemption, the £250 individual gifts to others, gifts out of normal income or spending it? I do not own a business, agricultural land, woodland or AIM shares; neither do I wish to donate to politcal parties, charities or national institutions.

King_Maker
Posts:6538
Joined:Wed Aug 06, 2008 3:22 pm

Re: How Can I Reduce my IHT Liability?

Postby King_Maker » Wed May 27, 2015 2:21 pm

Acquire a non-UK domicile in a suitable tax jurisdiction.

section 44
Posts:4468
Joined:Thu Oct 30, 2008 12:47 pm

Re: How Can I Reduce my IHT Liability?

Postby section 44 » Thu May 28, 2015 1:19 pm

In practice I have never ACTUALLY seen this done but if you could achieve immortality then that would ACTUALLY avoid IHT – the ultimate reduction.

sigmund
Posts:82
Joined:Mon Nov 02, 2009 10:03 pm

Re: How Can I Reduce my IHT Liability?

Postby sigmund » Thu May 28, 2015 3:49 pm

Thank you for your suggestions. People keep going on about using a discretionary will trust, I can see how one might control how the money is used but I can not see how on earth it actually saves more IHT than the steps I originally outlined. Or am I missing something?

devon
Posts:53
Joined:Wed Aug 06, 2008 3:14 pm

Re: How Can I Reduce my IHT Liability?

Postby devon » Fri May 29, 2015 9:38 pm

Immigrate to New Zealand, it’s a wonderful country and there is no inheritance tax.

But have patience as quite a time will need to elapse before you are totally free of the talons of HMRC

taxmenot
Posts:8
Joined:Wed Jun 03, 2015 1:54 pm

Re: How Can I Reduce my IHT Liability?

Postby taxmenot » Thu Jun 04, 2015 3:25 pm

Hi,

There are several ways of mitigating your IHT bill using statutory reliefs but before looking at this, what is the value of the estate?

welshtrustees
Posts:41
Joined:Tue Jun 18, 2013 7:17 pm

Re: How Can I Reduce my IHT Liability?

Postby welshtrustees » Mon Jun 08, 2015 1:59 pm

The one missing from your list is a SIPP which, like a relevant property trust, is (generally) considered outside your estate and so is not subject to IHT. Since the new rules, there is considerable flexibility as to to whom the benefits may be passed, potentially down multiple generations, with maintained tax free capital gains and income, and with the treatment of benefits actually taken depending on your age at death but worst case the beneficiaries marginal rate of tax.

The problem is getting enough money into it quickly enough; the political risk that the rules will all change again; and being wealthy enough that you do not need it yourself!

sigmund
Posts:82
Joined:Mon Nov 02, 2009 10:03 pm

Re: How Can I Reduce my IHT Liability?

Postby sigmund » Fri Jun 12, 2015 10:43 pm

Thanks for your suggestions but as I am already retired the Sipps route does not help. I am looking at reducing IHT on about £1.5M

IanDarkwater
Posts:49
Joined:Fri Oct 31, 2008 10:55 am

Re: How Can I Reduce my IHT Liability?

Postby IanDarkwater » Sun Jun 14, 2015 9:53 am

As a statement of the very obvious you are talking about a very significant potential IHT bill.

There are options offered by clever people across the entire spectrum from safe to very 'aggressive'. I suggest you pay an expert you trust with lots of PII cover to properly advise you. An accountant can discuss this with you.

I an not an accountant, I write wills, but if you want an introduction to an accountant I can arrange one.


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”