IHT Planning

4th July 2013

Use Lifetime Trusts to Save Inheritance Tax.
With the government confirming in the last Budget that the current inheritance tax nil rate band of £325,000 will be frozen until 2018, more and more people will find the taxman taking a sizeable slice of their estate on death.

Making gifts during your lifetime is one solution – you can gift assets of up to the value of the nil rate band every seven years. For many though, the thought of passing large sums of cash or valuable assets to their children at an early age may start alarm bells ringing.

Lifetime trusts solve this problem, by removing these assets from your estate, whilst enabling you to retain control over how the assets and income arising are handled. As trustee, you can safeguard the assets from gold-diggers or wayward offspring, whilst being able to provide income and or capital to the beneficiaries as and when required.
Trusts themselves are subject to inheritance tax every ten years, and also when capital is paid out. The charge every 10 years works out at a maximum of 6%, and with each trust retaining its nil rate band exemption, the savings compared with the 40% charge on death can be substantial.

There are clear incentives to beginning inheritance tax planning as early as possible – leaving it too late may mean leaving less to your loved ones.



 
Other items in Blogs
 
Julie Quayle
20th November 2017 Latest Update – Auto Enrolment Changes

View our latest information bulletin regarding Auto Enrolment including details on Contribution Phasing, What to pay and information on complying with the Pensions Regulator. Download Latest Auto Enrolment Leaflet For further information and guidance you can contact your usual Whiting and Partners representative or speak to our payroll department on 01353 662595 or by email…

Read More »

Scott Bishop
17th November 2017 VAT registration threshold reduction ahead?

Last week the Office for Tax Simplification delivered a report on VAT to the government, which among other things, covered the potential impact of reducing the VAT registration threshold. The report recommended that the Chancellor should “examine the current approach to the level and design of the VAT registration threshold, with a view to setting…

Read More »

Scott Bishop
14th November 2017 New to business? Beware of payments on account!

  When setting up in business you will be fully aware that you will have tax to pay on your profits, and you will ideally be putting money aside to cover this. What you might not be aware of is that you may have to pay two years’ worth of tax in just six months.…

Read More »

Vanessa Pearson
10th November 2017 Changes to Large Company Research & Development relief

  The Research and Development Expenditure Credit (RDEC) has now replaced the large company R&D scheme. This credit is mandatory for accounting periods ended 31 March 2017, and we are now seeing the implications of claiming the new relief. The credit applies to large companies, and SME’s who claim under the large company scheme, for…

Read More »

Catherine Hubbard
10th November 2017 Reminder for all companies ahead of MTD

  The MTD machine is moving along and the starting date of April 2019 draws ever closer and closer.  We have been working with our clients to ensure that those VAT registered (in particular) with a turnover over the VAT threshold are implementing any changes required sooner rather than later so that any teething problems can…

Read More »

Richard Alecock
1st November 2017 HMRC no longer accepting credit card payments – January 2018

  HMRC have advised that from 13 January 2018, they will no longer be accepting payments from personal credit cards. HMRC have accepted credit card payments from individuals, but from 13 January 2018, this method of payment will no longer be available. A change in EU law, prohibits merchants (including HMRC) from recharging credit card…

Read More »