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Where Taxpayers and Advisers Meet

Minimising IHT liability
Joined:Wed Aug 06, 2008 3:10 pm

Postby » Mon Aug 30, 2004 2:24 am

What is the best way to plan to minimise tax liability.

Parents currently have property (jointly owned) approx 200K, Money on deposit & investments of approx 800K (mostly held by father), plus principal shareholder of a company with assets of approx 250K.

I am currently a director (with minimal shareholding) of the company.

What is the best way to plan to minimise tax liability, particularly in view of the recent mention of higher IHT rates?

Arnold Aaro
Joined:Wed Aug 06, 2008 3:11 pm

Postby Arnold Aaro » Mon Nov 08, 2004 6:08 pm

1. Discretionary Nil Rate band Trusts so that your parents each make use of their Nil rate band'. This reduces the tax bill by £105,200.

To further reduce the tax bill, a Discounted Gift Trust (DGT) could be the answer. This allows you to gift away capital, yet take an income form the gift. The beneficiaries cannot touch the gift until parents have passed away.

Arnold Aaron
Investment and Inheritance Tax Planner
Zurich Advice Network
e mail:
Tel: 0208 437 2500

[I advise extensively on Inheritance Tax Planning, particularly Discounted Gift Trusts and Investments in general]

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