Recently HM Revenue & Customs were tasked by the Government to undertake a review of Inheritance Tax (IHT) reliefs and exemptions. Their findings were not unexpected.
Many individuals who were included in the discussions had little or no awareness of IHT reliefs and exemptions.
The standard exemptions such as gifting and spousal exemption were more widely known.
The Charity exemption was known, but very few had any intention of utilising
Business owners are motivated by two main factors, succession of wealth and preservation of the business. Often decisions will be made once the next generation has decided whether or not to be involved.
It is always useful to remember that if the business is eligible for Business Property Relief, then retaining an interest and continuing to work will ensure no IHT liability on your Estate. However, passing it on to the next generation and surviving 7 years can ensure that the value of the business falls entirely outside of your Estate.
IHT can be seen to be an “unjust” tax because the assets have been built up over a lifetime, do you have an opinion?
We at Lambert Chapman offer an Estate Review Service so that you can understand what your IHT exposure is and start to look at options.
Whilst you may not wish to break up your Estate, understanding what options are available both in life and via your Will can ensure peace of mind.
Contact the team for a review of your affairs.
The views expressed in this article are the personal views of the Author and other professionals may express different views. They may not be the views of Lambert Chapman LLP. The material in the article cannot and should not be considered as exhaustive. Professional advice should be sought in connection with any of the issues contained in the article and the implementation of any actions.