Inheritance Tax is an avoidable tax


Posted by: Duncan Orr ">Duncan Orr, on January 31, 2018.


It is often said that Inheritance Tax is an avoidable tax, but many of us somehow fail to avoid it.

Why is this?

In our experience, clients’ failure to plan effectively is a result of the following perceived problems:

  1. Speed – How often will the thought of having to survive 7 years from the date of making a gift to a family member or from the date of creating a new Trust deter us from actually going ahead with the plan?
  2. Control – If the timeframe isn’t a barrier, then for many, the prospect of losing control over funds that they may require at a later stage in life or gifting funds to close family members where they may have doubts about current relationships, can certainly be a problem
  3. Access – Take away the option of being able to retain access to any funds that you use for Inheritance Tax planning and once again, this can act as a deterrent.

Is there an alternative?

We’ve referred to investing in Business Property Qualifying assets many times in previous articles and how they can offer fast (100% exemption from IHT after 2 years), simple (No Gifts, No Trusts, just a straightforward new investment) and accessible (no loss of access to your funds if required) solutions.

Recently, in addition to these benefits, we now have the option of a Business Property Qualifying investment that can offer virtually immediate exemption from IHT. How?

Is this too good to be true?

Simply, if you are aged 89 or younger and have not been diagnosed with a terminal illness then you will qualify for an insurance policy that will run alongside a new Business Property Qualifying investment.

The result – Under the worst-case scenario, with death occurring before the 2-year qualifying period has passed, there would now be an insurance policy in place that would pay, free of IHT and before Probate is required, a sum equal to the IHT that would ordinarily have been payable.

In short, a strategy for some, that can genuinely provide virtually immediate exemption from IHT.

Start planning now

As you can see from the graph below, effective planning should be well underway from your mid 40s and not something that’s left to latter years.

Please contact us if you have any questions regarding Inheritance Tax Planning and Business Property Qualifying investments. You can call us on 01825 76 33 66 or complete a contact form.



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