How to use business property relief to mitigate IHT

clock

Jonathan Gain of Stellar Asset Management discusses how business property relief can be used to mitigate inheritance tax

Inheritance tax (IHT) is triggered when, in its simplest terms, an asset is transferred from one party to another typically on death. However, in reality there are exemptions and therefore complications as to how a liability to IHT can be mitigated. Firstly, we all have an allowance where assets can be transferred with no liability. The current threshold is £325,000 per individual. We are also able to make gifts during our lifetime which in monetary terms are relatively small. We can also enter into arrangements on trust for our beneficiaries. The liability to IHT in respect of gifts ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Estate planning

Octopus Investments unveils IHT and estate planning helpdesk

Octopus Investments unveils IHT and estate planning helpdesk

Aims to provide clarity on tax rules and the legalities of estate planning

Isabel Baxter
clock 16 September 2024 • 2 min read
Lasting power of attorney: Who guards the guardians?

Lasting power of attorney: Who guards the guardians?

'LPAs can be a real asset if used properly'

Adam Matthews
clock 23 August 2024 • 3 min read
Lessons from Succession: Unlocking generational wealth

Lessons from Succession: Unlocking generational wealth

What advisers can learn from the Roy family...

Simon Rogerson
clock 14 August 2024 • 4 min read