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

Intergenerational wealth transfer: DIY estate planning 'no longer an option'

Intergenerational wealth transfer: DIY estate planning 'no longer an option'

Complexity is part and parcel of tax reliefs and exemptions

Jenna Brown
clock 22 April 2025 • 2 min read
HMRC nets £6.3bn from IHT in first three quarters of 2024/25

HMRC nets £6.3bn from IHT in first three quarters of 2024/25

December receipts totalled £620m up 13%

Jenna Brown
clock 22 January 2025 • 4 min read
Surge in probate delays following inheritance tax changes

Surge in probate delays following inheritance tax changes

134% rise in year-long cases

Cameron Roberts
clock 16 January 2025 • 1 min read