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You probably know this...
My STEP tutor always said ..
' There are only two ways to not pay IHT - spent it or give it away'.
We all know IHT is an unfair tax and should be abolished
Planning for Inheritance Tax
Surely there is a major omission from the list of 'major' exemptions, that for transfers made 'as part of the normal expenditure of the transferor' (Section 21 IHTA 1984) or 'gifts out of income' as I generally call it for short. Never mind £3,000 p.a.: this can be worth £300 million p.a. if you have sufficient income!
As well as charitable donations
What about gifts to political parties?
These were noticeable by their absence when Dave C went on his moralistic rampage about the inequity of the "rich" being able to avoid tax by choosing to re-direct their income to a charity of their choice.
What a shame no one asked him about the moral grounding for exempting political donations from IHT, especially given the requirement for the party to have at least 2 elected MP's - who in the house of commons would vote against that?
Just an advert
I'm surprised this article was approved for publication really as it is a blatant advert with little or no analysis or insightful advice. Even a first year accountancy student should know this much. I doubt it contains anything useful for regular AW readers.
I would have been more impressed if the author had talked about things like pilot trusts, avoiding common pitfalls with BPR, keeping good records for gifts out of normal income (to avoid problems validating them many years later) or leaving business property to the next generation (so they could sell back to the surviving spouse for an IOU and hopefully get 2 lots of BPR on the second death).
But I guess useful titbits like that must be paid for, hence the blatant plug for the firm he works for.
Even the non-domiciled spouse bit was not all that helpful. You don't have to be here 17 years to jump that hurdle. There is such a thing as domicile of choice. The 17 years is just when you can no longer claim to be non-domiciled, so it is a ceiling for non-doms rather than a target for those wishing to be domiciled.
@cfield
I entirely agree....nothing that any self-respecting accountant wouldn't know already:-)