Inheritance Tax Made Simple

About the Author Abbreviations Preface Introduction Part 1: A Detailed Overview of the Inheritance Tax Regime 1.1 A reminder 1.2 IHT in a nutshell (transfers of value) 1.3 The meaning of domicile 1.4 The geographical ambit of IHT 1.5 The nil-rate band and the rate of IHT 1.6 The ticking seven-year clock 1.7 Many nil-rate bands 1.8 The spouse/civil partner exemption 1.9 The transferable nil-rate band 1.10 Using up the transferable nil-rate band 1.11 Multiple transferable nil-rate bands? 1.12 Maximising the tax savings from transferable nil-rate bands 1.13 Evidential issues raised by transferable nil-rate bands 1.14 More on domicile 1.15 The IHT charge on gifts (PETs and chargeable transfers) 1.16 Exemptions (transfers that are exempt from IHT) 1.17 Reliefs available in respect of inheritance tax 1.18 Capital gains tax (CGT) 1.19 Associated operations 1.20 Gifts with a reservation of benefit 1.21 Pre-owned assets 1.22 Wills 1.23 Severance of tenancy 1.24 Trusts 1.25 Valuing assets for IHT purposes 1.26 Conclusion of Part 1 Part 2: Planning During Your Lifetime to Reduce the Burden of Inheritance Tax On Your Death 2.1 Evaluating relevance of tax planning 2.2 Basic tax-planning solutions 2.3 Discounted gift schemes 2.4 Loan trusts 2.5 Making use of the CGT annual exemption of your spouse or civil partner 2.6 Using trusts to mitigate both CGT and IHT 2.7 Sale and purchase of smaller replacement home 2.8 Gifting part of your home 2.9 Severing and gifting part of your home 2.10 Commercial arrangements and the family home 2.11 Gift and leaseback of the family home 2.12 Will arrangements for couples living as partners 2.13 Business property: AIM/USM shares 2.14 Sheltering assets in the family business 2.15 Converting 50% BPR to 100% BPR 2.16 Maximising BPR and APR by allocating debts to non-business and non-agricultural assets 2.17 Maximising BPR and APR - the double-dip will 2.18 The 'Family Debt Scheme' 2.19 Using trusts to mitigate IHT - three approaches 2.20 Life insurance 2.21 Making wills - a must for everyone and in particular for the wealthy 2.22 Directing property into trusts when making wills (pilot trusts) 2.23 Seemingly clever strategies to avoid, as they do not work 2.24 Conclusion to Part 2 Part 3: Reducing the Burden of IHT on an Inheritance Preamble 3.1 Claim exemptions and reliefs 3.2 Be aware of the tools at your disposal 3.3 Deeds of variation 3.4 Disclaimers 3.5 Transfers out of trusts 3.6 Using the tools 3.7 Redirecting to spouse/civil partner 3.8 Maximising BPR and/or APR (double-dip) 3.9 Transferring growth tax-free 3.10 By-passing a generation 3.11 Giving to charities/political parties etc. Part 4: Dealing With Inheritance Tax Issues on Death if You Are Administering an Estate 4.1 Brief summary of administering an estate (probate) 4.2 Important time limits and penalties for delay 4.3 Valuations 4.4 Penalties for incorrect accounts 4.5 Liability to deliver accounts 4.6 Loss relief on sale of land 4.7 Loss of value relief on sale of shares 4.8 Quick succession relief 4.9 Liability to pay the tax 4.10 Dealing with the IHT 205 (2006) and IHT 400 Conclusion Appendices Appendix 1: Historical rates of nil-rate bands Appendix 2: HMRC's view on redirection as avoidance Appendix 3: Glossary Disclaimer Index