A Guide To INHERITANCE TAX - St James's Place

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Gifting Gifting is an effective way of reducing your IHT bill, as it removes assets from your estate before your death. In order to qualify, gift making must be handled carefully and without strings. For example, if you were to continue to benefit from assets gifted away, they are likely to be regarded as ‘gifts with reservation’ and as a result fall back within your estate for the purposes of IHT. Gifting falls into three main categories: 1. Exempt transfers, where the gift becomes exempt from IHT on death. Examples might be transfers between spouses, civil partnerships or gifts to charity, or those which make use of gifting allowances. 2. Potentially exempt transfers, where exemption is achieved if the gift is given seven years before death. Gifts given less than seven years from death may benefit from varying levels of relief. 3. Chargeable lifetime transfers are gifts which are generally made into most types of trust which become immediately subject to IHT, where the gift exceeds the Nil Rate Band, but only at a rate of 20% when paid by the Trustees or 25% when paid by the Settlor. 10 PARTNERS IN MANAGING YOUR WEALTH
Tax efficient funds The Alternative Investment Market (AIM) and small businesses provide an opportunity for people looking to minimise their IHT liability. Both allow investors to tackle IHT without losing access to, and ownership of, capital. Investing in shares quoted in AIM or small businesses provides IHT freedom after only two years, and in the case of investment in small businesses through an Enterprise Investment Scheme (EIS) it may also be possible to reduce an income tax or CGT bill. For many investors, the decision to invest in AIMquoted shares or an EIS is motivated by the significant tax advantages provided. You should bear in mind that the bases of taxation and reliefs from taxation can change at any time as they are subject to changes in legislation. However, investment in this market does require specialist advice and so a professional adviser should be consulted.
Page 1 and 2: A Guide to INHERITANCE TAX PARTNERS
Page 3 and 4: Inheritance Tax - some facts Whethe
Page 5 and 6: Inheritance Tax what it means to yo
Page 7 and 8: What to do about Inheritance Tax Th
Page 9: Using trusts A suitably worded trus
Page 13 and 14: Summary It is better to do somethin
Page 15 and 16: We do not believe in off-the-shelf

A Guide To INHERITANCE TAX - St James's Place

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