Inheritance tax is due to to 20% on lifetime chargeable transfer and 40% when transferred on death. IHT is due if you transfer /gift property to trust or individuals above nil rate band of £325,000 or where it is not Potentially Excempt Transfer (PET). In some instances, IHT is payable when a property enters and when it leaves the trust.

You can avoid paying high inheritance tax if you plan on time. For example, if a donor transfer property seven years before death, it can escape IHT at all. As IHT and CGT are interlinked so you need an expert to provide you tax efficient advice.

There are many tax-efficient structures that can reduce tax bills.

Experts at Groopacc Taxation have been helping clients to get benefit of using Tax effective planning for Inheritance Tax. This way you can make your loved ones to be benefited from the assets generated by your day-night efforts.

Our qualified and experienced partners advise based on five simple things that can reduce the Inheritance Tax liability.

1. Make a gift to your partner at the right time

Groopacc Taxation has helped the clients by transferring assets to spouse or civil partner. So they will not pay the Inheritance Tax on the estate on what the gift’s worth.

There are different rules for the spouse or civil partner’s permanent home is outside the UK.

1. Give anything to a family member or friends.

There are certain occasions where individuals like to give some amount or gift. Giving some money or asset to a friend or family member is wise Tax planning when getting no benefit from it. Although the value Is still included in the estate but for seven years only.

An example would be to give away up to £3,000 a year and can be given away the money to children and grandchildren when they get marry.

You can beat Inheritance Tax by giving away assets, setting up a trust, or changing your will. Make sure you pay attention to the legal details.

1. Setting the assets into a trust.

If the asset, cash, property, or investment can no longer be a part of the estate if they have been put up into a trust in a way where your spouse and children can benefit from. For example, the trust can be set up for paying towards Grandchildren’s education or a support to a family member with a disability. Trust can be set up right away or can be established in the will. Some types of trust might have to pay Inheritance Tax themselves.

Rules are much complicated but our experts at Groopacc Taxation will advise you on how to minimise your inheritance tax.

1. Leaving something to charity

Donating any amount or asset to a charity is exempt from Inheritance Tax which reduces the Inheritance Tax liability while contributing to a good cause.

Out of complex calculation, if 10% of estate is left to a charity, this will be liable to 36% of Inheritance tax rather than 40%. This may not be huge saving but will make entitled to receive more by family as well charity is also benefited.

1. Life insurance

This does not reduce the Inheritance Tax liability due on the estate but the pay-out makes it easier for the surviving family to pay the Inheritance Tax bill.

Experts at Groopacc Taxation advise their clients on how to gain the benefits of life insurance out of complex rules. The pay-out should must got into trust otherwise it will make the estate bigger and will make a more pay-out tax liability.