There is probably no such thing as a popular tax but according to a recent survey Inheritance Tax (IHT) has become the UK’s least popular tax!
Why is this? In a word, fear. Fear that the family home and other long held assets will need to be sold to pay the tax. Over the years, property prices have increased much more rapidly than the IHT threshold pushing more and more people into the IHT net.
As a result many of our clients have asked us to review their IHT position. The aim of this review is to ensure that all reasonable steps have been taken to minimise their exposure to IHT. We’ve found this process to work very well, with clients ending up having peace of mind that their affairs are in good shape.
Over time, we have developed Inheritance Tax planning strategies tailored to suit our client’s specific needs. There are a number of ways in which IHT can be minimised including;
- Tax-efficient wills
- Maximising all available reliefs
- Lifetime giving
- IHT friendly investments and life assurance.
There is a very valuable IHT relief known as Business Property Relief which can exempt the value of business assets from IHT. We have come across a number of cases where the way our clients business was operated or structured meant that this relief was lost. By implementing a few changes were able to secure this relief and avoid the worst case scenario of the family business having to be sold on death of a family member.
By pulling together the resources of our specialists from both Johnston Carmichael and Johnston Carmichael Financial Services we are able to give comprehensive tax and independent financial advice.
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For further information on our Inheritance Tax advisory services and how we can help you, please contact John Todd, our Inheritance Tax specialist .