Ways to minimise Inheritance Tax
If you're thinking about passing on your wealth, it's possible to reduce or avoid paying more IHT than is necessary. Some of the ways you could do this include placing assets into a trust, paying into a pension instead of a savings account or leaving an estate to a civil partner or spouse.
There are also a number of specific gifts or money that can be passed on without any IHT being due - such as helping to pay for a wedding or providing financial support for a child's education. Likewise anyone can give £3,000 in assets or cash each year without any IHT being liable. You can learn more about gifting below.
Relief might also be available on certain types of property, such as farms and business assets. And, if something is gifted seven years before someone dies, that gift is also exempt of IHT (if they die within the seven years, a reduced rate applies - depending on the value of the gift, when it was given and the recipient).
It's worth keeping a record of any gifts, as they may be called into question at a later date. Always be aware that tax rules change, so please double-check what you can and can't do and consider professional advice.
