What is Inheritance tax?
"Inheritance Tax is, broadly speaking, a voluntary levy paid by those who distrust their heirs more than they dislike the Inland Revenue." Roy Jenkins MP, Commons debate, 1986

In other words, much of what pours into the chancellor's coffers is a result of people's failure to plan properly. More and more people are finding themselves facing an IHT liability on death.

In fact it's now perfectly possible to become a higher rate taxpayer for the first time after death!

If you are confused or worried about Inheritance Tax (IHT) and want to plan ahead, Arnold Aaron can help you. Whether your estate is large or small, Arnold can advise on the most effective way to reduce or even eliminate IHT, specific to your situation. This does not necessarily mean having to gift away all of your assets, leaving you short. Arnold offers practical solutions, tailored around you and your circumstances.

There are a variety of Inheritance Tax planning tools available, but knowing when and how to implement them requires expert professional advice. Whatsmore, keeping abreast of the latest tax legislation means any plans set up need to be reviewed regularly. Arnold is able to provide all of these services to his clients. After carefully assessing any Inheritance Tax liability, he can advise on, and set up the most effective vehicles to address your Inheritance Tax concerns.

Some of the schemes Arnold advises on are:

  • Life Assurance - Setting up a cost effective Whole of Life policy and placing it in Trust to cover an Inheritance Tax bill. This allows the family to inherit assets intact, avoiding the need to sell them to raise the cash to pay a tax bill.
  • Gift and Loan Trust - This is a loan of capital to a trust, which is accessible at any time however, the growth on the Trust fund is exempt from Inheritance Tax. This Trust is available as a Bare or Discretionary Trust.
  • Discounted Gift Trust - A sophisticated vehicle which reduces the value of an estate immediately for Inheritance Tax purposes. Assets are placed into a Trust, which provides a tax efficient income to the settlor for life. This is not affected by the 'gift with reservation' rules, including those under the Pre-Owned Assets Finance Act 2004. A proportion of the fund is removed from the estate immediately for IHT purposes, with the remainder falling outside the estate after 7 years. A specialist application of this Trust, in certain circumstsances, can be used to mitigate IHT on property and also achieve an efficient extraction of capital from a family business or Limited company. This Trust is also available under a Bare or Discretionary Trust. Read an article on how the Discunted Gift Trust works.

HM Revenue and Customs practice and the law relating to taxation are complex and
subject to individual circumstances and subject to individual changes which
cannot be foreseen.