Introduction  
 TaxWorld: Inheritance Tax Planning

Inheritance Tax World

Introduction
 
IHT Liability
 
Who Pays The Liability?
 
Mitigating IHT
 
Provision for Liability
 
Trusts
 
Next Steps
 
Select the Above Options for Information on Inheritance Tax
 


Inheritance Tax World

Research the whole taxation gamut, from income tax to inheritance tax.

 


IHT - WHEN IHT LIABILITY COMES ABOUT


WHEN CAN AN IHT LIABILITY COME ABOUT?

In simple terms, the trigger for an IHT charge is when an asset is transferred.  This might be for three reasons:

  1. It is transferred from one individual to another.
  2. It is transferred from an individual to a trust.
  3. It is transferred from a trust to an individual.
It only applies of the transfer is a gift, as opposed to a “loan” or if it is purchased at full market value.  (If a transfer is made at below or above market value then the difference would be treated as a gift).

However, just because such a transfer is a “trigger” for IHT, it does not necessarily mean that the tax is due at that time.  To explain, it is worth considering the three types of transfer that there are:

  • Chargeable Transfers
  • Exempt Transfers
  • Potentially Exempt Transfers (PETs)


Hopefully, these will provide at least some insight into the various, often common sense, routes to protect your assets from the taxman.