Inheritance Tax

Calculator Piggy

Excess income? Why not ‘top up’ a trust...

The ‘normal expenditure out of income’ exemption is an underutilised IHT exemption particularly for gifts into trust which are traditionally used with lump sums. Topic:Lifetime Gifts
Completing Forms

Wills and trusts part 1

The terms "will" and "trust" are common, but sometimes poorly understood. The distinctions between them are significant, as they are both important in estate and succession planning but generally serve different purposes. In a well thought out financial plan they are complementary to each other. Here we look at what they are and how they’re created. Topic:Succession planning
Handing over papers

Wills and trusts part 2

Wills and trusts, as described in our previous article ‘wills and trusts part 1’, are common, but sometimes poorly understood. The distinctions between them are significant, as they are both important in estate and succession planning but generally serve different purposes. Here we look at each in more detail. Topic:Succession planning

Residence Nil Rate Band – don’t turn your back on IHT planning

An article providing a brief summary of the new Nil Rate Band available for an individuals residence and the impact it will have on IHT planning. Topic:NIL Rate Band
Coloured buildings

Consultation – IHT on UK property

The UK Treasury issued a consultation paper outlining changes to the inheritance tax (IHT) treatment of UK property held within offshore structures on Friday 19 August 2016. Changes will apply from 6 April 2017. Topic:Succession planning

Absolute or discretionary trust and IHT

The following article provides information about inheritance tax planning for UK domiciled individuals where a gift has been made and the individual does not require access to capital or withdrawals. Topic:Lifetime Gifts
group of people

UK IHT and chargeable lifetime transfers

This article aims to explain the inheritance tax reporting requirements that are now in place and what this means for Old Mutual International’s trusts. Topic:Lifetime Gifts
completing forms

Application for an IHT reference number

This article explains when an Inheritance Tax reference number should and should not be obtained before paying Inheritance Tax on an estate. Topic:Succession planning
couple on beach

Nil-rate band discretionary trusts

Since the introduction of the transferable nil-rate band, the use of the nil-rate band discretionary trusts is now appears limited for estate planning. However, it remains an important tool in effective estate planning. Topic:NIL Rate Band
campervan couple

Normal expenditure out of income

This article explains the inheritance tax planning benefits of making regular gifts out of income. This article assumes that you are familiar with the basic workings of inheritance tax. Topic:Lifetime Gifts
businessman walking

Making regular IHT gifts out of income

The following illustrative case studies demonstrate how making gifts out of income to use the normal expenditure out of income exemption can work in practice. Topic:Lifetime Gifts
Handing over papers

An introduction to forced heirship

The following article provides an overview of the principles of forced heirship rules. Topic:Succession planning
child money

IHT – the forgotten tax

IHT's impact isn’t felt until the client dies, when clients may have more pressing issues to deal with. This article provides some reminders of ways to save on the eventual IHT bill. Topic:Succession planning
couple meeting adviser

Deeds of variation

How deeds of variation can be used to alter the position of a deceased person’s estate and how to register a deed of variation with HM Revenue & Customs (HMRC) in the UK. Topic:Succession planning
businessman tablet

14-year rule when making gifts

This article outlines why it is important for an adviser to establish the full gifting history of a settlor who makes gifts into discretionary trusts for inheritance tax purposes. Topic:Lifetime Gifts
London town

Transferrable nil-rate bands

This article provides a summary of the changes introduced on 9 October 2007 relating to transferable nil-rate bands which received Royal Assent in the Finance Act 2008. Topic:NIL Rate Band
Coloured housing

Finance Act: How will property nil rate band work in practice?

Last year the government announced measures designed to tackle the growing number of estates drawn into an inheritance tax liability as a consequence of house price appreciation. Topic:NIL Rate Band
flower house

No need to own the home for 0% band

HMRC has issued new guidance on how those who have downsized their home later in life or have had to sell it, can still benefit from the Main Residence Nil Rate band announced in the Summer Budget. Topic:Succession planning
boy with car

Making gifts – order of gifting

When making gifts for IHT purposes, it is essential to consider the order in which gifts into trusts are made. The order in which gifts are made will dictate the future taxes applicable to the trusts created. Topic:Lifetime Gifts

Inheritance Tax (IHT) planning - using your tax allowances

The following case study illustrates a typical IHT planning issue for UK domiciled clients along with potential solutions. A full fact find would need to be completed to assess suitability of the potential solutions by the adviser. The solutions are based on exemptions and allowances available under the rules in force at the date of this article for the tax year 2015/16. Topic:Lifetime Gifts
woman in window

Rules of Intestacy

This article explains how your estate will be distributed under the laws of England and Wales. It also touches briefly on how this differs from the laws of Scotland and Northern Ireland. Topic:Succession planning
big ben

UK Intestacy rules

From 1 October 2014, the UK intestacy rules have been amended by the Inheritance and Trustees’ Powers Act 2014.  Topic:Succession planning
handing over papers

Regular premium policies and exemptions

Various exemptions are available to individuals who wish to give assets away so that they are immediately no longer included in their ‘estate’ for inheritance tax (IHT) purposes. Topic:Lifetime Gifts

Business/Agricultural Property Relief

This article explains how Business Property Relief and Agricultural Property Relief operate in relation to Inheritance Tax planning and also highlights some of the recent cases on this topical subject. Topic:Succession planning
Man signing paper

An introductory guide to Wills

Many people wrongly believe that their whole estate will pass to their spouse or civil partner upon their death. However, this will only apply if a correctly drawn up Will makes such provision. Topic:Succession planning
pen and cards

Forced heirship and Manx law trusts

The following article explains how Isle of Man trust legislation works and how this may be used to minimise and possibly eradicate the issues related to forced heirship in some jurisdictions. Topic:Succession planning
Pen and calendar

Succession planning & cross border issue

This article addresses some of the issues an adviser may face when advising an individual who has assets situated in both the UK and other jurisdictions. Topic:Succession planning
open book

UK IHT gifts - exemptions and reliefs

This article is designed to give you a basic understanding of the exemptions and reliefs available for UK inheritance tax payable on gifts. Topic:Lifetime Gifts
Open book

Obtaining a domicile ruling before death

UK HMRC rarely provide rulings until they become relevant for tax purposes. However, a guidance note was issued by HMRC (HMRC Brief 34/2010) which details the circumstances in which an individual’s domicile will be considered for IHT. Topic:NIL Rate Band

Financial Adviser Verification

The content of this site is for advisers only. It is not for the use of Hong Kong advisers. You can change the regional content by selecting a region from the drop down box in the top right-hand corner.