Inheritance Tax

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
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
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
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
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
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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
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
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

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

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
Man on mac

IHT reporting thresholds

New reporting threshold regulations on Inheritance Tax (Delivery of Accounts) (Excepted Transfers and Excepted Terminations) came into force on 6 April 2008, and apply for the 2007/08 tax year onwards. Topic:Lifetime Gifts
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
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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
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
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
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

How to complete IHT100 and IHT100a forms

Completing the IHT100 Forms following the declaration of an Old Mutual Wealth/Old Mutual International Discounted Gift Trust (Discretionary version) or Old Mutual Wealth/Old Mutual International Discretionary Trust (Settlor excluded and Settlor included versions). Topic:Lifetime Gifts
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
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
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
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