Simple Ways to Avoid Inheritance Tax
Legitimately keeping what's yours from the Taxman
A Tips & Advice book about...
In a nutshell
Effective inheritance tax (IHT) planning can save your family a fortune. With plenty of tips and real life examples, this book helps you optimise the tax position when passing on your wealth. It explains what steps you can take to legitimately put your assets beyond HMRC's grasp. Use it to reduce your tax liability in a legally safe way.
In plain English, this book tells you all you need to know about IHT:
- When IHT is due
- How IHT is calculated
- Which assets could be liable to IHT
- How you can minimise IHT or avoid it altogether
Make sure your wealth stays where it belongs; don't miss out on this indispensable guide to IHT.
We've created this Tips & Advice book especially for...
Anyone that wants to:
- Safely keep their assets out of HMRC's hands
- Take full advantage of IHT exemptions and reliefs
- Preserve their wealth for the next generation
Tax advisors that want to:
- Advise their clients what steps they can take to legitimately save on IHT
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- To immediately apply our advice and solutions in practice
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In this Tips & Advice book you'll read about...
Table of contents
Chapter 1 - Introduction to IHT
1.1. Which transactions trigger IHT?
1.2. What’s a disposition?
1.3. Are all individuals chargeable to IHT?
1.4. Are there special domicile rules for IHT?
1.5. Are there different rules for gifts made on death or while alive?
1.6. Are there special rules for trusts?
1.7. Can companies be liable to IHT?
1.8. How is a transfer valued for IHT?
Chapter 2 - Transfer of value
2.2. Transfers outside the scope of IHT
2.3. Exempt transfers
2.4. Excluded property
2.5. Sales at undervalue
2.6. Associated transfers
Chapter 3 - Valuation
3.1. How is a transfer valued for IHT?
3.2. What counts as part of your estate?
3.3. How is the loss of value calculated?
3.4. Related property
3.5. What does “market value” of an asset mean?
3.6. How are land and buildings valued?
3.7. How are shares and other securities valued?
3.8. How are life policies valued?
3.9. How are debts dealt with for IHT?
Chapter 4 - Calculation
4.1. What triggers an IHT bill?
4.2. What’s the “accumulation of transfers” rule?
4.3. What transfers do IHT reliefs apply to?
Chapter 5 - Chargeable lifetime transfers
5.1. What are the different types of lifetime transfer?
5.2. Can the IHT payable be reduced?
5.3. When is a gift a chargeable lifetime transfer?
5.4. What are the consequences of making a chargeable lifetime transfer?
5.5. How much IHT is payable on a CLT?
5.6. How is the additional tax payable on death worked out?
5.7. How does the cumulative seven-year rule work?
Chapter 6 - Potentially exempt transfers
6.1. What’s the difference between PETs and CLTs?
6.2. Are PETs cumulative in the same way as CLTs?
6.3. How does the annual exemption interact with a PET?
6.4. How is the IHT on death worked out?
Chapter 7 - Taper relief
7.1. When does taper relief apply?
7.2. How much will IHT be reduced by taper relief?
Chapter 8 - The estate at death
8.1. What are the IHT consequences of death?
8.2. Are there any IHT exemptions that apply on bequests?
8.4. What’s the position in the case of insolvency?
8.5. Do special valuation rules apply?
Chapter 9 - Getting the most out of the nil rate band
9.1. After valuing the estate - what next?
9.2. Is the deemed transfer on death a net or gross transfer?
9.3. What is the “transferable nil rate band”?
9.4. How is the TNRB calculated?
9.5. What effect does remarriage have on the nil rate band?
9.6. How are lifetime gifts and transfers affected by the TNRB?
9.7. Is a TNRB available for a non-domiciled spouse?
9.8. How is the TNRB claimed?
9.9. Will HMRC accept a late claim?
9.10. What is the main residence nil rate band?
Chapter 10 - Post-death tax planning
10.1. Can a will be changed?
10.2. How can the terms of a will be altered?
10.3. What are variations or disclaimers?
10.4. What does “express wishes of the testator” mean?
10.5. What’s a survivorship clause?
10.6. What are the effects of a court order that changes the terms of a will?
10.7. What’s the IHT position on money paid from a trust created by a will?
Chapter 11 - Paying the tax
11.1. What are legacies?
11.2. How is IHT calculated on a specific gift?
Chapter 12 - Business property relief
12.1. When does business property relief apply?
12.2. How much BPR?
12.3. Which types of asset are excluded from BPR?
12.4. What does “wholly or mainly” mean?
12.5. Does BPR apply to property rental businesses?
12.6. How long does an asset have to be owned before BPR applies?
12.7. What is the special rule for associated shares in unquoted companies?
12.8. How is BPR calculated on replacement business assets?
12.9. How does the two-year rule apply where you inherit a business?
12.10. What restriction of BPR is there if the asset transferred is being sold?
12.11. What are excepted assets?
12.12. What are the practical effects of BPR?
12.13. Are there special rules for valuing business property?
12.14. How does BPR affect the calculation of IHT?
12.15. How does BPR affect lifetime transfers?
12.16. How is BPR calculated on replacement business property?
Chapter 13 - Agricultural property relief
13.1. What is agricultural property relief?
13.2. Does it matter where the property is located?
13.3. What property can qualify for APR?
13.4. Who can claim APR?
13.5. What are the rules for replacement property?
13.6. Is APR due where a property that’s been inherited is transferred?
13.7. Are there ownership and occupation concessions for successive transfers?
13.8. Will APR be allowed if the property is up for sale?
13.9. How does APR work in practice?
13.10. What does “agricultural value” mean?
13.11. What deductions must be made from the agricultural value?
13.12. How does APR affect the calculation of IHT?
13.13. Any additional rules for lifetime transfers?
13.14. Is APR due on replacement property?
13.15. How does APR interact with BPR?
13.16. Is there a special relief for woodlands?
Chapter 14 - Reliefs for falls in value and quick succession
14.1. Is IHT relief due where the value of an asset falls?
14.2. How is the relief applied to lifetime transfers?
14.3. How is the asset valued?
14.4. Do all assets qualify for the relief?
14.5. How is the relief worked out?
14.6. Will BPR or APR affect the fall in value relief?
14.7. What special valuation rules are there?
14.8. What are the rules where assets are sold following an inheritance?
14.9. What is quick succession relief?
Chapter 15 - Wills and why they are important
15.1. Why should you make a will?
15.2. How will your estate be divided if you don’t leave a will?
15.3. Simple tax planning using a will
Chapter 16 - Making use of tax-free gifts
16.1. How can making regular gifts help reduce IHT?
16.2. How much can you give away?
16.3. What if your income drops?
16.4. What are the general rules?
16.5. How can HMRC’s advice help with IHT planning?
16.6. Can you use exemptions in combination?
16.7. Can you use the annual exemption and the small gifts exemption together?
16.8. Who needs to know about your IHT planning?
Chapter 17 - Insurance policies
17.1. Why are life insurance policies important?
17.2. What’s the right type of policy?
17.3. Can there be a problem with life assurance pay-outs?
Chapter 18 - Reduce your inheritance tax bill - by giving to charity
18.1. How does this work?
18.2. What charities does this apply to?
18.3. How is the 10% benchmark calculated?
18.4. IHT avoidance strategy: Elect to merge components
18.5. Can the will be varied to increase the charitable bequest to take advantage of the reduced rate?
Chapter 19 - Practical points
19.1. Business property relief for investors
19.2. Making gifts in the right order
19.3. Joint accounts and the death estate
19.4. Putting pension benefits in trust
19.5. Making gifts - some practical points
19.6. Deeds of variation
Chapter 20 - Case studies
Deeds of variation
Small gifts exemption
Keeping your estate in check
Taper relief trap
Making gifts in the right order
Wills - IHT planning
Gifts out of income
Appendix 1 - Intestacy rules
Appendix 2 - List of tax cases concerning business property relief
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