How to reduce your clients' IHT liability

IHT

clock

Neil MacGillivray, head of technical support at James Hay, says cake-and-eat-it schemes still work.

The amount of inheritance tax (IHT) collected by HMRC has reduced from £3.8bn in 2007/08 to £2.4bn in 2009/10, a whopping 37% reduction in two years. This has arisen in the main due to the introduction of transferable nil rate bands (NRB) between spouses and civil partners as well as generous increases in previous years of the NRB limit. However, with the NRB limit now frozen until 2015, the tax take is showing signs of rising again with the monthly amount from IHT this July at its highest since July 2008. It is therefore always important not to overlook your client’s potential liabil...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Inheritance Tax

Steven Levin of Quilter Investors

For the sake of future generations pensions must be invested correctly

Important wealth managers and financial advisers talk to clients

Steven Levin
clock 27 January 2022 • 4 min read
Chancellor Rishi Sunak ordered the review into CGT in July. Photo: Andrew Parsons/Number 10/Flickr CC BY-NC-ND 2.0

Investors on 'high alert' as OTS proposals could triple population subject to CGT

Current GTS rates may double in line with income taxation

Mike Sheen
clock 12 November 2020 •
HMRC set out the principles for taxing trusts and sought views on reform in line with them

Government urged to simplify trust tax system

Recommendations from HMRC review

Jayna Rana
clock 11 March 2019 •
Trustpilot