Flexible strategies help reduce the tax burden

With IHT now a 'mainstream' issue, is it time to apply a greater degree of flexibility to help make mitigation easier?

Inheritance tax (IHT) has been around for more than 200 years, since the introduction of legacy, succession and estate duties in 1796. Modern IHT rules were introduced by way of capital transfer taxes in 1976, which were replaced by the Inheritance Taxes Act in 1984. IHT is charged at 40% on assets in excess of the nil rate band (NRB), currently set at £300,000. Historically, IHT has been seen as a tax on the rich, but due to the dramatic rise in housing prices across the UK in recent years, it has become a 'mainstream' issue. Many homes are now at a value that falls firmly within the IHT...