Clive Barwell TEP FCSI CFP

Clive Barwell
TEP CFP Chartered FCSI

Accredited Member of the Society of Later Life Advisers

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Blog | Inheritance Tax

Is the Nil Rate Band going to be £1m?

In the summer budget of 2015, the Chancellor announced measures for which the headline was an increase in the Nil Rate Band for Inheritance Tax to £1m, but is this true and, if so, who will benefit?

How Does Inheritance Tax Work?

Inheritance Tax is usually paid on an estate (all assets, less any liabilities) when somebody dies. It's sometimes payable on trusts or gifts made during someone's lifetime (but only to companies, not individuals).

How to Reduce Inheritance Tax

Former Chancellor of the Exchequer, Roy Jenkins, once said, “Inheritance Tax is a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue”! Whilst the rules have been tightened-up somewhat since he said this, there are certainly many things that can legitimately be done to reduce the burden of Inheritance Tax.

Calculating Inheritance Tax

How inheritance tax is calculated including an example. Other than in some Trust situations, which I won’t go into here, Inheritance Tax is payable on the net value of your estate after you die.

Gifts and Inheritance Tax

Are inheritance gifts a good way to avoid Inheritance Tax?

In a word, yes! However, are you absolutely certain you can afford to make the gift in the first place? Have you enough income and other financial resources to maintain your standard of living throughout your retirement, come what may, even for future long-term care, for example? If so, gifts are a great way to reduce a future Inheritance Tax liability.

Inheritance Tax – Mitigation Using Business Property Relief

One of the most comprehensive reliefs from Inheritance Tax (IHT) is Business Property Relief (BPR). This has been part of the IHT landscape since the tax was first introduced in 1984 and, for many years, has provided 100% (originally 50%) relief for qualifying business assets.

Inheritance Tax, Business Property Relief and specialist BPR products

In Inheritance Tax – Mitigation using Business Property Relief – I introduced both Business Property Relief (BPR) and the concept of this being available to non-entrepreneurs. In this article, I will begin to explore the use of BPR products, which have been put together by specialist Investment Managers to bring BPR relief from IHT to […]

Inheritance Tax – Business Property Relief and Forestry

If the investment is structured in the right way, commercial forestry represents a good shelter against inheritance tax while also producing periodic tax-free income as mature trees are felled and the timber sold.

Inheritance Tax, Business Property Relief and AIM shares

All forms of investment carry some degree of risk and whilst I don’t want to understate the risk of investing in shares quoted on the AIM, I will argue that the step-up from investing in shares quoted on the London Stock Exchange is not that great, if fundamental investing principles are followed.

Inheritance Tax – Normal, Habitual expenditure out of income

If it can be demonstrated that a pattern of gifting had been established and that the amounts gifted were demonstrably affordable out of normal income, those gifts are outside your estate immediately

Inheritance Tax | A Case Study using income

Written under a simple family trust, the policy proceeds then cost-effectively compensates the beneficiaries for some or all of the IHT on death.

Inheritance Tax Planning | A Case Study

Whilst Enid’s overriding concern is to maintain her own financial independence, come what may, she continues to be concerned about the impact Inheritance Tax (IHT) will have on her two sons when they eventually inherit.

Can I use my Will to save Inheritance Tax?

The moral of our three stories here is to regularly review your Will, particularly if it was drafted before 09 October 2007.
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