An IHT bill can be steep but it’s possible to take advantage of certain reliefs and exemptions which can reduce how much is owed.
According to the Money Advice Service, up to £3,000 can be given away per tax year and this amount will not be added to the value of the estate for IHT purposes, this is known as an “annual exemption”.
It is also possible to take advantage of certain assets that provide IHT “relief” which can reduce a tax burden, such as business relief, agricultural relief or charity exemption.
This can all get very complicated and as such, the government has specific forms in place to be completed so everything can be organised effectively.
Published at Tue, 02 Jun 2020 08:11:00 +0000