Some investments qualify for Relief from IHT. Examples of such investments are:
Investments (Shares) in Private Companies
Shares in (some) AIM listed Companies
Investments in Trading Partnerships
Assets such as these have 100% relief from IHT. This means that even if they are such that
there would otherwise be an IHT liability, no tax is due. This applies not only to “Lifetime Gifts” but
also on death.
As a result of this, there are a number of
specialist investment scheme that are available which utilise the tax relief
that is available. There can be a number
of investment risks with these investments and as such it is important that
these are understood before any investment is made. Also it is possible that the IHT relief may
be removed in the future. However, for
the right investor, they can prove attractive as a part in a diversified portfolio.
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