This is an easy tax to mitigate but forward planning and recording are required. For example, business assets owned for two years before death including non-listed shares in a trading company are exempt from IHT. So are working farms and hotels, pubs and other property backed businesses – which are obviously attractive as they are fairly safe asset classes. The conversion of non business assets into business assets is therefore a prime consideration.
Another simple planning tool is to use gifts - survive seven years after a gift and pay no Inheritance Tax at all.
There are many such simple planning strategies that can be used.
To find out more about effective IHT planning strategies, please contact us today.