Due to rising property prices over recent years, inheritance tax has become an issue for many couples whose only asset is their main residence. In addition, although there are many generous relief’s to help pass on business assets to your intended beneficiaries, if the business is sold on retirement, this can create a significant inheritance tax problem and prove very expensive.
Anti-avoidance legislation introduced over recent years, including the Pre-Owned assets charge, means planning must be carefully structured to mitigate inheritance tax without creating income tax charges during life. There are still a number of effective solutions to mitigate exposure to inheritance tax currently, including lifetime giving, tax efficient Wills, utilisation of reliefs and the use of trusts, however, reform of the inheritance tax system is expected over the next few years which may significantly reduce opportunities and it is advisable to address inheritance tax exposure sooner rather than later.
