Inheritance Tax Planning From a UK Chartered Accountant and Chartered Tax Adviser.
May 2021 Edition
Inheritance tax is a particularly nasty tax as it’s a tax on your capital that you’ve accumulated from your after tax earnings.
It applies at 40% on the value of your estate above the nil rate band (currently £325,000). It’s not just the assets held at the date of your death that are included, but also assets gifted away (in some cases) up to 14 years before.
In this book we look at some of the top ways you can legally reduce your inheritance tax liability.
There are a number of options and opportunities – from simply giving away assets to setting up a trust or emigrating from the UK completely.
Topics covered include:
- How to reduce Inheritance tax on gifts
- Non dom inheritance tax changes
- How the exemption for normal transfers of income applies
- When the 7 year period becomes a 14 year period
- What to do and when to avoid Inheritance tax
- Reducing IHT with the 36% rate of Inheritance tax
- How to maximize tax reliefs for charitable giving
- Inheritance tax planning for joint bank accounts
- Reducing Inheritance tax on insurance policies
- Putting life insurance into a flexible gift trust or bare trust to reduce Inheritance tax
- Using side letters for IHT purposes
- Inheritance tax planning for the family home
- Reducing tax on a property investment portfolio by using mortgages
- Debts on death and IHT Planning
- When is it worth forming a lifetime trust for UK tax planning and how to determine which type of trust to use
- Planning for joint accounts and inheritance tax/succession planning
- How to use a nil rate band “Settlor Interested Trust” tax efficiently
- How to save substantial amounts of inheritance Tax on your investment properties
- Maximizing tax Inheritance tax relief on your family company
- AIM shares & IHT relief
- Qualifying for Inheritance Tax relief on companies with large cash balances
- How the transferable nil rate band applies
- Using a Parallel Company to reduce Inheritance tax
- Reducing Inheritance tax with a double tax treaty
- A review of the UK-US Inheritance tax/Estate tax treaty
- UK inheritance tax and gifting cash abroad
- Emigrating from the UK to avoid Inheritance Tax
- When the 7 year inheritance tax survivorship period can be avoided
- How shareholders can use cross options to retain entitlement to Business Property Relief
- All about the new Residence Nil Rate Band (RNRB) and how to maximise relief
- Releasing cash as debt for IHT purposes
- Losing UK domicile status
- Using a Discretionary trust or Life interest trust for IHT planning?
- Self-settlement of the nil-rate band for UK IHT purposes
About the AuthorThe author of the “Inheritance Tax Planning Handbook ” is Lee Hadnum. Lee is a rarity among tax advisers having both legal and chartered accountant qualifications. After qualifying a prize winner in the Institute of Chartered Accountants exams, he also went on to become a chartered tax adviser (CTA).
He worked in Ernst & Youngs Entrepreneurial Services department for a number of years before setting up his own tax planning practice. He is now a full time tax author.
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