guide to inheritance tax planning autumn 09

8/14/2019 Guide to Inheritance Tax Planning Autumn 09

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Inheritance

Tax Planning

A Guide to

Preserving and Passing your wealth


2/28A Guid to Inhritanc Tax - 2009/201002

Protecting wealth


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A Guide toInheritance TaxPlanning

Helping you protect your wealth is an important part o what we do, and one thing is

certain, you need to plan to protect your wealth rom a potential Inheritance Tax liability.

Benjamin Franklin once said that nothing is certain but death and taxes, and thanks to

Inheritance Tax, theyre not only certain, theyre intrinsically linked. Once only the domain

o the very wealthy, the wide-scale increase in home ownership and rising property values

over the past decade have pushed many estates over the Inheritance Tax threshold.

Inheritance Tax applies to your entire worldwide estate, including your property, savings,

car, urniture and personal eects. You should also consider all o your investments,pensions and lie insurance policies and ensure that lie polices are held in an appropriate

trust so they do not add to the value o your estate.

Inheritance Tax as we know it today was introduced in 1986. The current rate o Inheritance

Tax or everyone is charged at 40 per cent, and is paid by those who inherit. It is deducted

rom your estate on death, so Inheritance Tax is relevant whether you stand to gain an

inheritance or plan to leave one.

I you would like to discuss the options available to you or protecting your legacy, please

contact us or urther inormation. We can help you with the many aspects o Inheritance

Tax Planning, rom advice on wills and trusts to other tax-ecient ways to ensure your

wealth is best structured or your beneciaries.

Welcome to our guide to Inheritance Tax, dedicated to

helping you mitigate the potential eects o Inheritance

Tax on your estate, whether you are considering the use

o amily trusts or alternative solutions. Your wealth might

encompass businesses, property and investments in the UK

and abroad that require specialist considerations.

03A Guid to Inhritanc Tax - 2009/2010

Welcome



To obtain urther inormation,please contact us.

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Contents...06 17

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Dispelling the mythabout Inheritance TaxProtecting wealth rom a potential liability.

Transrring walth btwnyour spous or civil partnr

New rules could mean up to double theInheritance Tax allowance is available.

Inhritanc Tax mattrsLeaving your assets.

Lgal documntsApplying or probate.

Making a willWill your estate be shared out

exactly as you want it to be?

Valuing an statAccurately refecting what those assets

would receive in the open market.

Financial rasons tomak a willPutting it o could mean that

your spouse receives less.

Altrnativ InvstmntMarkt sharsReducing an Inheritance Tax liability

on an estate.

Minimising anInhritanc Tax liabilityPassing assets to beneciaries

using a trust.

Important xmptions

Legally passing on your estatewithout it being subject to

Inheritance Tax.

A git with rsrvationMaking sure the git is not a git or

Inheritance Tax purposes.

Arranging to payInhritanc TaxWho will handle your aairs?

Protcting

your walthMaking the most o dierent

solutions.

Inhritanc Tax glossaryCommon estate planning terms.

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Dispellingthe myth about

Inheritance Tax

A Guid to Inhritanc Tax - 2009/201006

Inheritance Tax Guide What it means

Inheritance Tax is the tax that is paid on your estate, chargeable at a current

rate o 40 per cent. Broadly speaking, this is a tax on everything you own at the

time o your death, less what you owe. Its also sometimes payable on assets you

may have given away during your lietime. Assets include property, possessions,

money and investments. One thing is certain, careul planning is required toprotect your wealth rom a potential Inheritance Tax liability.

Protecting wealth rom a potential liability



Inheritance Tax Guide What it means

Not everyone pays Inheritance

Tax on their death. It only

applies i the taxable value o

your estate (including your share

o any jointly owned assets and

assets held in some types o

trusts) when you die is above

325,000 (2009/10 tax year).

It is only payable on the excess

above this nil rate band.

There are also a number o

exemptions which allow you to

pass on amounts (during your

lietime or in your will) without

any Inheritance Tax being due,

or example:

n i your estate passes to

your husband, wie or civil

partner and you are both

domiciled in the UK there is

no Inheritance Tax to pay,

even i the estate is above

the 325,000 nil rate band

n most gits made more than

seven years beore your death

are exempt

n certain other gits, such

as wedding gits and

gits in anticipation o a

civil partnership up to

5,000 (depending on the

relationship between thegiver and the recipient),

gits to charity and 3,000

given away each year are

also exempt

Transers o assets into most

trusts and companies will

become subject to an immediate

Inheritance Tax charge i they

exceed the Inheritance Tax nil

rate band (taking into account

the previous seven yearschargeable gits and transers).

In addition, transers o money

or property into most trusts are

also subject to an immediate

Inheritance Tax charge on values

that exceed the Inheritance Tax

nil rate band. Tax is also payable

ten-yearly on the value o trust

assets above the nil rate band;

however certain trusts are

exempt rom these rules.

In order to work out whether

the current Inheritance Tax nilrate band o 325,000 (tax year

2009/10) has been exceeded

on a transer, you need to take

into account all chargeable

(non-exempt, including

potentially exempt) gits and

transers made in the previous

seven years. I a transer takes

you over the nil rate band,

Inheritance Tax is payable at

20 per cent on the excess.

Where the transer was made

ater 5 April and beore

1 October in any year, the tax

is payable on 30 April in the

ollowing year. Where the

transer was made ater

30 September and beore

6 April in any year, it is payable

six months ater the end o the

month in which the transer

was made.

On 22 March 2006, the

government changed some o

the rules regarding trusts and

introduced some transitional

rules or trusts set up beore

this date. Trusts not aected by

the new rules (and so where no

Inheritance Tax is immediately

payable on any transers, but

with regard to transers made

during someones lietime may

be payable i the individual dies

within seven years) are:

n lietime transers into a trust

or a disabled person

n trusts created on death or a

disabled person

n trusts created on death or a

minor child o the deceased in

which the child will become ully

entitled to the assets at age 18

n trusts set up under a will

or someone who is not a

disabled person or minor

child o the deceased who

becomes entitled to their

benet on the death o the

person who wrote the will

Existing accumulation and

maintenance trusts had until 6 April

2008 to change (where appropriate)

the trusts rules to enable them toall outside the new rules.

Interest in possession (IIP)

trusts that existed beore

22 March 2006, or which

replaced a pre-March 2006 IIP

up to 5 October 2008, continue

to benet rom the old rules until

they come to an end. All other

newly created IIP trusts will

come under the new rules.

I you die within seven years o

making a transer into a trust

on which you have already paid20 per cent Inheritance Tax, the

tax due is recalculated using the

Inheritance Tax rate applicable

on death (currently 40 per

cent). Tax will be payable by

your estate to HM Revenue &

Customs on the dierence.

I you made a transer on which

no Inheritance Tax was due at

the time, its value is added to

your estate when working out

any Inheritance Tax that might

be due.

Trusts that count as relevant

property trusts must also pay:

n a periodic tax charge o up

to 6 per cent on the value

o trust assets over the

Inheritance Tax nil rate band

once every ten years

n an exit charge proportionateto the periodic charge

when unds valued above

the Inheritance Tax nil

rate band are taken out o

a trust between ten year

anniversaries

These rules dont apply to

trusts which are exempt rom

the new rules.

NeeD MOReINFORMATION?PLEASE CONTACT USWITH YOUR ENQUIRY.

Inheritance Tax is the tax that is paidon your estate, chargeable at acurrent rate o 40 per cent. Broadlyspeaking this is a tax on everything

you own at the time o your death,less what you owe.



Transerringwealth betweenyour spouse orcivil partnerNew rules could mean up to double theInheritance Tax allowance is available

New rules mean that the survivor o a

marriage or civil partnership can beneit

rom up to double the Inheritance Tax

allowance (650,000 or 2009/10 taxyear, increasing to 700,000 by 2010/11),

in addition to the entitlement to the ull

spouse relie.

Inheritance Tax is only paid i the taxable

value o your estate when you die is over

325,000 (2009/10 tax year). The irst

325,000 o a persons estate is known as

the Inheritance Tax nil rate band because

the rate o Inheritance Tax charged on this

amount is currently set at zero per cent, so

it is ree o tax.

Where assets are transerred between

spouses or civil partners, they are exempt

rom Inheritance Tax. This can mean that

i, on the death o the irst spouse or civil

partner, they leave all their assets to the

survivor, the beneit o the nil rate band

to pass on assets to other members o the

amily, normally the children, tax ree is

not used.

Where one party to a marriage or civil

partnership dies and does not use their

nil rate band to make tax-ree bequests to

other members o the amily, the unused

amount can be transerred and used by the

survivors estate on their death. This only

applies where the survivor died on or ater

9 October 2007.

In eect, spouses and civil partners now

have a nil rate band that is worth up todouble the amount o the nil rate band that

applies on the survivors death.

Transerring assets


Where one party to amarriage or civil partnershipdies and does not use theirnil rate band to make tax-reebequests to other members othe amily, the unused amountcan be transerred and usedby the survivors estate ontheir death.



InheritanceTax mattersLeaving your assets

However, i you are domiciled (have

your permanent home) in the UKwhen you die but your spouse or

civil partner isnt, you can only

leave them 55,000 tax-ree.

Other benefciariesYou can leave up to 325,000 tax-

ree to anyone in your will, not just

your spouse or civil partner (tax year

2009/10). So you could, or example,

give some o your estate to someone

else or a amily trust. Inheritance Tax

is then payable at 40 per cent on any

amount you leave above this.

UK CharitiesInheritance Tax isnt payable on

any money or assets you leave to

a registered UK charity these

transers are exempt.

Wills, trusts and fnancialplanningAs well as making a will, you can

use a amily trust to pass on your

assets in the way you want to. Youcan provide in your will or speciic

assets to pass into a trust or or

a trust to start once the estate is

inalised. You can also use a trust

to look ater assets you want to

pass on to beneiciaries who cant

immediately manage their own

aairs (either because o their age

or a disability).

You can use dierent types o amily

trust depending on what you want

to do and the circumstances. I you

are planning to set up a trust you

should receive specialist advice. I you

expect the trust to be liable to tax on

income or gains you need to inormHM Revenue & Customs Trusts as soon

as the trust is set up. For most types

o trust, there will be an immediate

Inheritance Tax charge i the transer

takes you above the Inheritance

Tax threshold. There will also be

Inheritance Tax charges when assets

leave the trust.

NeeD MORe

INFORMATION?PLEASE CONTACT USWITH YOUR ENQUIRY.

I you leave everything to your husband, wie or civilpartner, in this instance there usually wont be anyInheritance Tax to pay because a husband, wie or civilpartner counts as an exempt beneciary. But bear inmind that their estate will be worth more when theydie, so more Inheritance Tax may have to be paid then.

Exempt benefciary



Getting legal

Lgal documntsApplying or probate

I you are an executor o someones will, you may need a legal document called a

grant o probate to enable you to sort out the deceased persons aairs. I thereis no will, a close relative can apply or a grant o letters o administration. In

Scotland dierent procedures apply or a death.

I there is more than one executor

its common to agree that one will

apply or the grant and sort out the

will. However, up to our executors

can apply jointly and sort out

everything together.

You can ask a solicitor to applyor the grant or you. There

may be a charge to provide this

service, so its a good idea to

check irst.

I you apply or probate without

a solicitor, the orms you need to

complete depend on where the

person lived and whether or not

you expect Inheritance Tax to be

due on the estate. Inheritance Tax

is only paid in a small number o

cases, when the taxable value othe deceased persons estate (ater

exemptions) is over the 325,000

threshold (applies or deaths in the

2009/10 tax year).



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Will your estate be shared out exactly as you want it to be?

Planning your nances in advance should

help you to ensure that when you die

everything you own goes where you want it

to. Making a will is the rst step in ensuring

that your estate is shared out exactly as you

want it to be.

I you dont make a will, there are rules orsharing out your estate called the Law o

Intestacy, which could mean your money

going to amily members who may not need

it, or your unmarried partner or a partner

with whom you are not in a civil partnership

receiving nothing at all.

I you leave everything to your spouse or

civil partner therell be no Inheritance Tax to

pay because they are classed as an exempt

beneciary. Or you may decide to use your

tax-ree allowance to give some o your

estate to someone else or to a amily trust.

A will sets out who is to benet rom your

property and possessions (your estate) ater

your death. There are many good

reasons to make a will:

n you can decide how your assets are

shared i you dont have a will, the law

says who gets what

n i youre an unmarried couple (whether or

not its a same-sex relationship), you can

make sure your partner is provided or

n i youre divorced, you can decide whether

to leave anything to your ormer partnern you can make sure you dont pay more

Inheritance Tax than necessary

Beore you write your will, its a good idea to

think about what you want included in it. You

should consider:

n how much money and what property and

possessions you have

n who you want to benet rom your will

n who should look ater any children under

18 years o age

n who is going to sort out your estate and

carry out your wishes ater your death in

other words, your executor

An executor is the person responsible or

passing on your estate. You can appoint an

executor by naming them in your will. The

courts can also appoint other people to be

responsible or doing this job.

Once youve made your will, it is important to

keep it in a sae place and tell your executor,close riend or relative where it is.

It is advisable to review your will every ve

years and ater any major change in your

lie, such as getting separated, married or

divorced, having a child or moving house.

Any change must be by codicil (an addition,

amendment or supplement to a will) or by

making a new will.

Scottish law on inheritance diers rom

English law.

Making a will

NeeD MORe

INFORMATION?PLEASE CONTACT USWITH YOUR ENQUIRY.

11A Guid to Inhritanc Tax - 2009/2010

Intestacy



Protecting wealth

12

Valuing an estateAccurately refecting what those assets would receive in the open market

Valuing the deceased persons estate is one o

the rst things you need to do as the personal

representative. You wont normally be able to take

over management o their estate (called applying

or probate or sometimes applying or a grant o

representation/ conrmation) until all or some o

any Inheritance Tax that is due has been paid.

But bear in mind that Inheritance Tax is only payable

on values above 325,000 or the 2009/10 tax year.

The valuation process

This initially involves taking the value o all the assets

owned by the deceased person, together with the

value o:

n their share o any assets that they own jointly with

someone else or example, a house that they own

with their partner

n any assets that are held in a trust, rom which they

had the right to benetn any assets which they had given away, but in which

they kept an interest or instance, i they gave a

house to their children but still lived in it rent-ree

n certain assets that they gave away within the last

seven years

Next, rom the total value above, deduct everything that

the deceased person owed, or example:

n any outstanding mortgages or other loans

n unpaid bills

n uneral expenses

(I the debts exceed the value o the assets owned by the

person who has died, the dierence cannot be set against

the value o trust property included in the estate.)

The value o all the assets, less the deductible debts,

gives you the estate value. The threshold above which

the value o estates is taxed at 40 per cent is 325,000

or the 2009/10 tax year.

I you dont know the exact amount or value o any

item, such as an Income Tax reund or household

bill, you can use an estimated gure. But rather

than guessing at a value, try to work out an estimate

based on the inormation available to you. Youll nd

instructions about how to show estimates on the

orm you complete.

The orms on which youll need to record the valuation

will dier, depending on the expected valuation amount.

You complete a orm IHT205 or estates where you dont

expect to have to pay Inheritance Tax (called excepted

estates) and a orm IHT400 where you do expect to have

to pay. The orms vary or excepted estates in Scotland.

You should be able to value some o the estate assets

quite easily, or example, money in bank accountsor stocks and shares. In other instances, you may

need the help o a proessional valuer (or chartered

surveyor or valuing a property). I you do decide to

employ a valuer, make sure you ask them to give you

the open market value o the asset. This represents

the realistic selling price o an asset, not an insurance

value or replacement value.

I the aairs o the estate are complicated, you may want

to work with a solicitor to help you value the estate and

pay any tax due. I youre not using a solicitor you can ask

HM Revenue & Customs to use orm IHT400 to work outany Inheritance Tax due.

Once youve completed the relevant tax orms, you also

need to complete the relevant probate orm.

When valuing adeceased personsestate, you needto include assets(property, possessionsand money) theyowned at their deathand certain assetsthey gave away duringthe seven yearsbeore they died.The valuation mustaccurately refect whatthose assets wouldreasonably receive inthe open market at thedate o death.




Protecting wealth

Paying Inheritance Tax - orms you need to complete

Country in which the Required orms i Inheritance Tax Required orms i you expect

deceased person lived is unlikely to be due (excepted estates) Inheritance Tax to be due

England or Wales Probate application orm PA1 Probate application orm PA1

Inheritance Tax orm IHT205 Inheritance Tax orm IHT400

Form IHT421 Probate summary

Scotland Form C1 (Inventory) and orm C5 i they Form C1 (Inventory)

died on or ater 6 April 2004; otherwise Inheritance Tax orm IHT400

orm C1 only

Northern Ireland Inheritance Tax Form IHT205 only Inheritance Tax orm IHT400

Form IHT421 Probate summary



Intestacy

Thr ar lots o good fnancial rasons or

making a will:

n you can decide how your assets are

shared out - i you dont make a will, the

law says who gets what

n i you arent married or in a civil

partnership (whether or not its a same

sex relationship) your partner will not

inherit automatically, so you can make

sure your partner is provided or

n i youre divorced or i your civil

partnership has been dissolved you can

decide whether to leave anything to an

ex-partner who is living with someone

else

n you can make sure you dont pay more

Inheritance Tax than necessary

I you and your spouse or civil partner

own your home as joint tenants, then

the surviving spouse or civil partner

automatically inherits all o the property.

I you are tenants in common you each own a

proportion (normally hal) o the property and

can pass that hal on as you want.

A solicitor will be able to help you should you

want to change the way you own your property.

Planning to give your homeaway to your children whileyoure still aliveYou also need to bear in mind, i you are

planning to give your home away to your

children while youre still alive, that:

n gits to your children, unlike gits to your

spouse or civil partner, arent exempt

rom Inheritance Tax unless you live or

seven years ater making them

Financial reasonsto make a willPutting it o could mean that your spouse receives less

Its easy to put o making a will. But i you die without one, your assets may bedistributed according to the law rather than your wishes. This could mean that your

spouse receives less, or that the money goes to amily members who may not need it.



Intestacy

n i you keep living in your home

without paying a ull market

rent (which your children pay

tax on) its not an outright git

but a git with reservation,

so its still treated as part o

your estate, and so liable or

Inheritance Taxn ollowing a change o rules

on 6 April 2005, you may

be liable to pay an Income

Tax charge on the benet

you get rom having ree or

low cost use o property you

ormerly owned (or provided

the unds to purchase)

n once you have given your

home away, your children

own it and it becomes part

o their assets. So i they are

bankrupted or divorced, your

home may have to be sold to

pay creditors or to und part

o a divorce settlement

n i your children sell your

home, and it is not their main

home, they will have to pay

Capital Gains Tax on any

increase in its value

I you dont have a will there are

rules or deciding who inherits

your assets, depending on yourpersonal circumstances. The

ollowing rules are or deaths on

or ater 1 July 2009 in England

and Wales; the law diers i you

die intestate (without a will) in

Scotland or Northern Ireland.

The rates that applied beore

that date are shown in brackets.

I youre married orin a civil partnership

and there are no childrenThe husband, wie or civil partnerwont automatically get everything,

although they will receive:

n personal items, such as

household articles and

cars, but nothing used or

business purposes

n 400,000 (200,000) ree

o tax or the whole estate

i it was less than 400,000

(200,000)n hal o the rest o the estate

The other hal o the rest o the

estate will be shared by the

ollowing:

n surviving parents

n i there are no surviving

parents, any brothers and

sisters (who shared the same

two parents as the deceased)

will get a share (or their

children i they died while the

deceased was still alive)

n i the deceased has none o

the above, the husband, wie

or registered civil partner will

get everything

I youre married or ina civil partnership andthere were childrenYour husband, wie or civil partner

wont automatically get everything,

although they will receive:

n personal items, such as

household articles and cars,

but nothing used or business

purposes

n 250,000 (125,000) ree o

tax, or the whole o the estate

i it was less than 250,000

(125,000)

n a lie interest in hal o the rest

o the estate (on his or her death

this will pass to the children)

The rest o the estate will be

shared by the children.

I you are partners butarent married or in acivil partnershipI you arent married or registered

civil partners, you wont

automatically get a share o your

partners estate i they die without

making a will.

I they havent provided or you

in some other way, your only

option is to make a claim under

the Inheritance (Provision or

Family and Dependants) Act

1975.

I there is no survivingspouse/civil partnerThe estate is distributed as

ollows:

n to surviving children in equal

shares (or to their children i

they died while the deceased

was still alive)

n i there are no children, to

parents (equally, i both alive)

n i there are no surviving

parents, to brothers and

sisters (who shared the same

two parents as the deceased),

or to their children i they

died while the deceased wasstill alive

n i there are no brothers or

sisters then to hal brothers

or sisters (or to their children

i they died while the


n i none o the above then to

grandparents (equally i more

than one)

n i there are no grandparents

to aunts and uncles (or their

children i they died while thedeceased was still alive)

n i none o the above, then to

hal uncles or aunts (or their

children i they died while the


n to the Crown i there are none

o the above

Itll take longer to sort out

your aairs i you dont have

a will. This could mean extradistress or your relatives and

dependants until they can draw

money rom your estate.

I you eel that you have not

received reasonable nancial

provision rom the estate, you

may be able to make a claim

under the Inheritance (Provision

or Family and Dependants)

Act 1975, applicable in England

and Wales. To make a claim you

must have a particular type o

relationship with the deceased,

such as child, spouse, civil

partner, dependant or cohabitee.

Bear in mind that i you were

living with the deceased as a

partner but werent married

or in a civil partnership, youll

need to show that youve been

maintained either wholly or

partly by the deceased. This

can be dicult to prove i youveboth contributed to your lie

together. You need to make a

claim within six months o the

date o the Grant o Letters o

Administration.




Tax-efciency

AltrnativInvstmntMarkt sharsReducing an Inheritance Tax liability on an estate

Investing in Alternative

Investment Market (AIM) shares

is one way o reducing an

Inheritance Tax liability on an

estate. Qualiying AIM shares

oer more Inheritance Tax relie

than some other assets and

qualiy as business property

investments. I property is

held as AIM shares in certain

trading companies, or a period

o at least two years, it becomes

eligible or Inheritance Tax

Business Property Relie at

100 per cent and will all out o

the estate or Inheritance Tax

purposes. This relie is a relie by

value the shares are treated as

having no value or Inheritance

Tax purposes.

Not all AIM companies are eligible

or Business Property Relie

however. To qualiy, a company

must be a trading company

carrying out the majority o its

business in the UK. Businesses

trading in land or securities, or

receiving a substantial amount

o income rom letting property

or land, are excluded. Also, it

must not be listed on another

recognised stock exchange. I a

company qualied or Inheritance

Tax relie when the shares were

bought, but was subsequently

disqualied under these criteria,

investors must reinvest their

holdings into new qualiying

shares within six months to retain

the Business Property Relie

exemption.

Investing in the AIM will suit

nancially secure people

with other liquid capital who

can invest widely enough to

bear the risks involved. AIM

shares can be unpredictable

and invest in smaller, less

established companies with

ewer investors than other

stock markets, so share prices

can be volatile, rising or alling

rapidly. You should always

receive proessional advice

beore considering this option to

mitigate a potential Inheritance

Tax liability.

Invsting in th AIM will suit

fnancially scur popl with othrliquid capital who can invst widlynough to bar th risks involvd.



UK trusts

Minimising anInhritanc Tax liabilityPassing assets to beneciaries using a trust

You may decide to use a trust to pass assets to beneciaries, particularly those who

arent immediately able to look ater their own aairs. I you do use a trust to give

something away, this removes it rom your estate provided you dont use it or get any

benet rom it. But bear in mind that gits into trust may be liable to Inheritance Tax.

Trusts oer a means o holding

and managing money or

property or people who may

not be ready or able to manage

it or themselves. Used in

conjunction with a will, they

can also help ensure that

your assets are passed on in

accordance with your wishes

ater you die. Here we take a

look at the main types o UK

amily trust.

When writing a will, there

are several kinds o trust

that can be used to help

minimise an Inheritance Taxliability. On 22 March 2006 the

government changed some o

the rules regarding trusts and

introduced some transitional

rules or trusts set up beore

this date.

A trust might b cratd in

various circumstancs, or

xampl:

n when someone is too youngto handle their aairs

n when someone cant handle

their aairs because theyre

incapacitated

n to pass on money or property

while youre still alive

n under the terms o a will

n when someone dies without

leaving a will (England and

Wales only)

What is a trust?A trust is an obligation binding

a person called a trustee

to deal with property in a

particular way or the beneit o

one or more beneiciaries.

SettlorThe settlor creates the trust

and puts property into it at thestart, oten adding more later.

The settlor says in the trust

deed how the trusts property

and income should be used.

TrusteeTrustees are the legal owners

o the trust property and must

deal with it in the way set out

in the trust deed. They also

administer the trust. There can

be one or more trustees.

BenefciaryThis is anyone who beneits

rom the property held in the

trust. The trust deed may name

the beneiciaries individually

or deine a class o beneiciary,

such as the settlors amily.

Trust propertyThis is th proprty (or capital)

that is put into th trust by

th sttlor. It can b anything,

including:

n land or buildings

n investments

n money

n antiques or other

valuable property

The main types oprivate UK trust

Bare trustIn a bare trust the property is

held in the trustees name but

the beneciary can take actual

possession o both the income

and trust property whenever

they want. The beneciaries are

named and cannot be changed.

You can git assets to a child

via a bare trust while you are

alive, which will be treated as

a Potentially Exempt Transer

(PET) until the child reaches

age 18, (the age o majority in

England and Wales), when the

child can legally demand his or

her share o the trust und rom

the trustees.

All income arising within a

bare trust in excess o 100

per annum will be treated

as belonging to the parents

(assuming that the git was

made by the parents). But

providing the settlor survives

seven years rom the date o

placing the assets in the trust,

the assets can pass InheritanceTax ree to a child at age 18.

Lie interest or interestin possession trustIn an interest in possession

trust the beneiciary has a legal

right to all the trusts income

(ater tax and expenses), but

not to the property o the trust.

These trusts are typically used to

leave income arising rom a trustto a second surviving spouse

or the rest o their lie. On their

death, the trust property reverts

to other beneciaries, (known



UK trusts

as the remaindermen), who are

oten the children rom the rst

marriage.

You can, or example, set up an

interest in possession trust in

your will. You might then leave the

income rom the trust property to

your spouse or lie and the trust

property itsel to your children

when your spouse dies.

With a lie interest trust, thetrustees oten have a power

o appointment, which means

they can appoint capital to the

beneiciaries (who can be rom

within a widely deined class,

such as the settlors extended

amily) when they see it.

Where an interest in

possession trust was in

existence beore 22 March

2006, the underlying capital

is treated as belonging to the

beneiciary or beneiciaries or

Inheritance Tax purposes, or

example, it has to be included

as part o their estate.

Transrs into intrst in

possssion trusts atr 22 March

2006 ar taxabl as ollows:

n 20 per cent tax payable based

on the amount gited into the

trust at the outset, which isin excess o the prevailing nil

rate band

n Ten years ater the trust

was created, and on each

subsequent ten-year

anniversary, a periodic

charge, currently 6 per cent,

is applied to the portion o

the trust assets that is in

excess o the prevailing nil

rate band.

n The value o the availablenil rate band on each ten-

year anniversary may be

reduced, or instance, by the

initial amount o any new

gits put into the trust within

seven years o its creation.

There is also an exit charge

on any distribution o trust

assets between each ten-year

anniversary.

Discretionary trustThe trustees o a discretionary

trust decide how much income

or capital, i any, to pay to

each o the beneiciaries butnone has an automatic right

to either. The trust can have

a widely deined class o

beneiciaries, typically the

settlors extended amily.

Discretionary trusts are a

useul way to pass on property

while the settlor is still alive

and allows the settlor to keep

some control over it through

the terms o the trust deed.

Discretionary trusts are

oten used to git assets to

grandchildren, as the lexible

nature o these trusts allows

the settlor to wait and see how

they turn out beore making

outright gits.

Discretionary trusts also allow

or changes in circumstances,

such as divorce, re-marriage

and the arrival o childrenand stepchildren ater the

establishment o the trust.

When any discretionary trust

is wound up, an exit charge

is payable o up to 6 per cent

o the value o the remaining

assets in the trust, subject to

the relies or business and

agricultural property.

Accumulation andmaintenance trustAn accumulation and

maintenance trust is used to

provide money to look ater

children during the age o

minority. Any income that isnt

spent is added to the trust

property, all o which later

passes to the children.

In England and Wales the

beneciaries become entitled

to the trust property when they

reach the age o 18. At that point

the trust turns into an interest in

possession trust. The position is

dierent in Scotland, as, once abeneciary reaches the age o 16,

they could require the trustees to

hand over the trust property.

Accumulation and maintenance

trusts that were already

established beore 22 March

2006, and where the child is

not entitled to access the trust

property until an age up to 25,

could be liable to an Inheritance

Tax charge o up to 4.2 per cent

o the value o the trust assets.

It has not been possible to

create accumulation and

maintenance trusts trust since

22 March 2006 or Inheritance

Tax purposes. Instead, they

are taxed or Inheritance Tax as

discretionary trusts.

Mixed trustA mixed trust may come about

when one beneiciary o anaccumulation and maintenance

trust reaches 18 and others are

still minors. Part o the trust

then becomes an interest in

possession trust.

Trusts orvulnerable personsThese are special trusts,

oten discretionary trusts,

arranged or a beneiciary

who is mentally or physicallydisabled. They do not suer

rom the Inheritance Tax

rules applicable to standard

discretionary trusts and can

be used without aecting

entitlement to state beneits;

however, strict rules apply.

Tax on incomerom UK trustsTrusts are taxed as entities

in their own right. The

beneiciaries pay tax separately

on income they receive rom

the trust at their usual tax

rates, ater allowances.

Taxation o propertysettled on trustsHow a particular type o trust

is charged to tax will depend

upon the nature o that trust

and how it alls within the

taxing legislation. For example,

a charge to Inheritance Tax may

arise when putting property

into some trusts, and on

other chargeable occasions

or instance, when urther

property is added to the trust,

on distributions o capital rom

the trust or on the ten-yearly

anniversary o the trust.


Trusts are verycomplicated, and

you may have to payInheritance Tax and/or Capital Gains Taxwhen putting propertyinto the trust. Iyou want to createa trust you shouldseek proessionaladvice.



UK trusts



Exemptions

Important

xmptionsLegally passing your estate without it being subject to Inheritance TaxThere are some

important

exemptions

that allow you

to legally passyour estate

on to others,

both beore

and ater your

death, without it

being subject to

Inheritance Tax.

Exempt benefciariesYou can giv things away to

crtain popl and organisations

without having to pay any

Inhritanc Tax. Ths gits,

which ar xmpt whthr you

mak thm during your litim

or in your will, includ gits to:

n your husband, wi or civil

partnr, vn i your

lgally sparatd (but not i

youv divorcd or th civil

partnrship has dissolvd),

as long as you both hav a

prmannt hom in th UK

n UK charitis

n som national institutions,

including national musums,univrsitis and th

National Trust

n UK political partis

But, bar in mind that gits to

your unmarrid partnr or a

partnr with whom youv not

ormd a civil partnrship arnt

xmpt.

Exempt gits

Som gits ar xmpt romInhritanc Tax bcaus o th

typ o git or th rason or

making it. Ths includ:

n Wdding gits/civil

partnrship crmony gits

Wdding or civil partnrship

crmony gits (to ithr o

th coupl) ar xmpt rom

Inhritanc Tax up to crtain

amounts:

n parnts can ach giv 5,000

n grandparnts and othr

rlativs can ach giv 2,500

n anyon ls can giv 1,000

You hav to mak th git on or

shortly bor th dat o th

wdding or civil partnrship

crmony. I it is calld o and

you still mak th git, thisxmption wont apply.

Small gitsYou can mak small gits, up to

th valu o 250, to as many

popl as you lik in any on tax

yar (6 April to th ollowing

5 April) without thm bing

liabl or Inhritanc Tax.

But you cant giv a largr sum

500, or xampl and claimxmption or th irst 250.

And you cant us this xmption

with any othr xmption whn

giving to th sam prson. In

othr words, you cant combin

a small gits xmption with

a wdding/civil partnrship

crmony git xmption and

giv on o your childrn 5,250

whn thy gt marrid or orm a

civil partnrship.

Annual exemptionYou can giv away 3,000 in

ach tax yar without paying

Inhritanc Tax. You can carr y

orward all or any part o th

3,000 xmption you dont us

to th nxt yar but no urthr.

This mans you could giv away

up to 6,000 in any on yar

i you hadnt usd any o yourxmption rom th yar bor.

You cant us your annual

xmption and your small gits

xmption togthr to giv

somon 3,250. But you can

us your annual xmption

with any othr xmption,

such as th wdding/civil

partnrship crmony git

xmption. So, i on o your

childrn marris or orms a civilpartnrship you can giv thm

5,000 undr th wdding/

civil partnrship git xmption



Exemptions

and 3,000 undr th annual

xmption, a total o 8,000.

Gits that are parto your normalexpenditureAny gits you mak out o

your atr-tax incom (but not

your capital) ar xmpt rom

Inhritanc Tax i thyr part

o your rgular xpnditur.

This includs:

n monthly or othr rgular

paymnts to somon,

including gits or

Christmas, birthdays or

wdding/civil partnrship

annivrsaris

n rgular prmiums on a li

insuranc policy (or you or

somon ls)

Its a good ida to kp a

rcord o your atr-tax incom

and your normal xpnditur,

including gits you mak

rgularly. This will show that

th gits ar rgular and that

you hav nough incom to

covr thm and your usual

day-to-day xpnditur

without having to draw on

your capital.

Maintenance gitsYou can also mak Inhritanc

Tax-r maintnanc

paymnts to:

n your husband or wi

n your x-spous or ormr

civil partnr

n rlativs who ar

dpndnt on you bcaus

o old ag or inirmity

n your childrn (including

adoptd childrn and stp-

childrn) who ar undr

18 or in ull-tim ducation

Potentially exempttransersI you, as an individual, mak

a git and it isnt covrd by

an xmption, it is known as a

potntially xmpt transr (PeT).

A PeT is only r o Inhritanc

Tax i you liv or svn yars

atr you mak th git.

Gits that count as a PeT ar

gits that you, as an individual,

mak to:

n anothr individual

n a trust or somon who is

disabld

n a bravd minors trustwhr, as th bniciary

o an Intrst In Possssion

(IIP) trust (with an

immdiat ntitlmnt

ollowing th dath o th

prson who st up th

trust), you dcid to giv

up th right to rciv

anything rom that trust or

that right coms to an nd

or any othr rason during

your litim

Only outright gitscount as PETsI you mak a git with strings

attachd (tchnically known

as a git with rsrvation o

bnit), it will still count as

part o your stat, no mattr

how long you liv atr making

it. For xampl, i you giv

your hous to your childrn

and carry on living thr

without paying thm a ull

commrcial rnt, th valu o

your hous will still b liabl

or Inhritanc Tax.

In som circumstancs a git

with strings attachd might giv

ris to an Incom Tax charg on

th donor basd on th valu

o th bnft thy rtain. In

this cas th donor can choos

whthr to pay th Incom Tax

or hav th git tratd as a git

with rsrvation.




Giting

A git with rsrvationMaking sure the git is not a git or Inheritance Tax purposesA git with reservation is a git that is not ully given away. Wheregits with reservation were made on or ater 18 March 1986, you caninclude the assets as part o your estate but there is no seven yearlimit as there is or outright gits. A git may begin as a git withreservation but some time later the reservation may cease.

In order or a git to be eective or

exemption rom Inheritance Tax,

the person receiving the git must

get the ull benet o the git to

the total exclusion o the donor.

Otherwise, the git is not a git or

Inheritance Tax purposes.

For example, i you give your

house to your child but continue

to live there rent ree, that would

be a git with reservation. I, atertwo years, you start to pay a

market rent or living in the house,

the reservation ceases when you

rst pay the rent. The git then

becomes an outright git at that

point and the seven year period

runs rom the date the reservation

ceased. Or a git may start as an

outright git and then become a

git with reservation.

Alternatively, i you give your house

to your child and continue to live

there but pay ull market rent, there

is no reservation. I over time youstop paying rent or the rent does

not increase, so it is no longer

market rent, a reservation will occur

at the time the rent stops or ceases

to be market rent.

The value o a git or Inheritance

Tax is the amount o the loss to

your estate. I you make a cash

git, the loss is the same value as

the git. But this is not the case

with all gits.


The value o a git

or Inheritance Tax

is the amount o

the loss to your

estate. I you makea cash git, the loss

is the same value

as the git. But this

is not the case with

all gits.



Protecting wealth

The personal representative (the person

nominated to handle the aairs o the

deceased person) arranges to pay any

Inheritance Tax that is due. You usuallynominate the personal representative in

your will (you can nominate more than

one), in which case they are known as

the executor. I you die without leaving

a will a court can nominate the personal

representative, in which case they are

known as the administrator.

I you have been nominated as someonespersonal representative you have to value

all o the assets that the deceased person

owned. This valuation must accurately refect

what the assets would reasonably etch in

the open market at the date o death.

In most cases, Inheritance Tax must be

paid within six months rom the end o

the month in which the death occurs,

otherwise interest is charged on theamount owing. Tax on some assets,

including land and buildings, can be

deerred and paid in instalments over ten

years.

Arranging to payInhritanc Tax

Forms you need to complete

Who will handle your aairs?

If the estate is unlikely to be subject to Inheritance Tax (an excepted estate)

Country in which the Required orms or excepted estatesdeceased person lived

England Form IHT205 and orm PA1 -application or probate

Scotland Form C1 (Inventory) and orm C5 ithey died on or ater 6 April 2004; ithey died beore this date orm C1 only

Northern Ireland Form IH205 only

If the estate is likely to be subject to Inheritance Tax

In this case you complete orm IHT400 plus any relevant supplementary orms (these

are indicated on the IHT400).

You also complete:

n orm IHT421 Probate summary i the deceased person lived in England, Wales or

Northern Ireland

n probate application orm PA1 i the deceased lived in England or Wales

n orm C1 Inventory i the deceased lived in Scotland

(In Northern Ireland you only complete a probate application form at interview.)


In most cases, InheritanceTax must be paid within six

months rom the end o the

month in which the deathoccurs, otherwise interest ischarged on the amount owing.



Solutions

Protctingyour walthMaking the most o dierent solutions

Decreasing term assuranceDecreasing term assurance can

be arranged to cover a potential

Inheritance Tax liability and

used as a Git Inter Vivos policy.

This is a type o decreasing term

plan that actually reduces at

the same rate as the chargeable

Inheritance Tax on an estate as

a result o a Potentially Exempt

Transer (PET).

For example, i you git part oyour estate away beore death,

then that part is classed as a PET,

meaning that or a period o seven

years there could be tax due on

the transer. This amount o tax

reduces by a set amount each year

or seven years.

The Git Inter Vivos plan is

designed to ollow that reduction

to ensure suicient money is

available to meet the bill i theperson who gited the estate

dies beore the end o the seven-

year period.

Such policies should be written in

an appropriate trust, so that the

proceeds all outside your estate.

Business andagricultural propertyBusiness and agricultural property

are exempt rom Inheritance Tax.

Business Property relie: To

qualiy, the property must be

relevant business property and

must have been owned by thetranseror or the period o two

years immediately preceding

death. Where death occurred ater

10 March 1992, relie is given by

reducing the value o the asset

by 100 per cent. Prior to 10 March

1992, the relie was 50 per cent.

Agricultural Property relie:

Agricultural property is dened

as agricultural land or pasture

and includes woodland and anybuildings used in connection with

the intensive rearing o livestock

or sh i the woodland or building

is occupied with agricultural land

or pasture and the occupation is

ancillary to that o the agricultural

land or pasture; and also includes

such cottages, arm buildings and

armhouses, together with the

land occupied with them as are

o a character appropriate to the

property. Where death occurred

ater 10 March 1992, relie is

given by reducing the value o the

property by 100 per cent (certain

conditions apply). Prior to thatdate the relie was 50 per cent.

Woodlands relieThere is a specic relie or transers

o woodland on death. However, this

has become less important since the

introduction o 100 per cent relie or

businesses that qualiy as relevant

business property.

Where an estate includes woodlands

orming part o a business, businessrelie may be available i the ordinary

conditions or that relie are satised.

When a woodland in the United



Solutions

Kingdom is transerred on death, the

person who would be liable or the tax

can elect to have the value o the timber

that is, the trees and underwood (but

not the underlying land) excluded

rom the deceaseds estate.

I the timber is later disposed o, its

value at the time will be subject to

Inheritance Tax. Relie is available i:

n an election is made within two years

o the death, though the Board o HM

Revenue & Customs have discretion

to accept late elections, and

n the deceased was the benecial

owner o the woodlands or at least

ve years immediately beore deathor became benecially entitled to it

by git or inheritance.

The Pre-Owned Assets TaxPre-Owned Assets Tax (POAT), which

came into eect on 6 April 2005,

clamped down on arrangements

whereby parents gited property to

children or other amily members

while continuing to live in the property

without paying a ull market rent.

POAT is charged at up to 40 per cent on

the benet to an individual continuing

to live in a property that they have

gited but are not paying a ull rent, and

where the arrangement is not caught by

the Git with Reservation rules.

So anyone who has eected such a

scheme since March 1986 could all within

the POAT net and be liable to an income tax

charge o up to 40 per cent o the annualmarket rental value o the property.

Alternatively, you can elect by

31 January ollowing the end o the tax

year in which the benet rst arises that

the property remains in your estate.

Rental valuations o the property must

be carried out every ve years by an

independent valuer.

Inhritanc Tax acts

Inheritance tax nilrate band and rates

n 1 in 40 people in the UK inherit an average o

17,500 each year. The total ater tax is 31bn.

n The average estate leaves 90,000 net o taxand the average amount received by each

individual is 17,500. This suggests that, on

average, people share out their bequests

among ve people. Some 10 per cent o

beneciaries receive 50,000 or more. A

urther 30 per cent receive 10,000 or more,

enough to make a down-payment on a home or

pay o a sizeable amount o a mortgage.

n The amount raised rom Inheritance Tax during

the 2006/07 tax year was 3.6bn.

n An estimate or the 2007/08 tax year or the

level o revenue raised rom Inheritance Tax is

expected to be 4.1bn.

n The individual threshold rom the current

325,000 (2009/10 tax year) is set to increase

by 7 per cent to 350,000 in 2010/11.

n It is possible to pass the unused proportion o

a nil-rate band to your spouse or civil partner

or use in the uture.

Sources: HM Revenue & Customs

& International Longevity Centre UK 2008

Inheritance Tax is charged at the ollowingrate on death:

Inheritance Tax 2009/10 tax year

Taxable value o your 325,000

estate above which it

is charged

Rate at which it is 40 per cent

charged

There is a specifc relie

or transers o woodland

on death. However, this

has become less important

since the introduction

o 100 per cent relie or

businesses that qualiy as

relevant business property.




Glossary

Inhritanc Tax glossaryCommon estate planning terms

Administration

Dealing with the aairs andestate o a person who has died,

including collecting their assets,

paying their debts and paying

the residue to the people who

are to benet.

AfdavitA document giving evidence

which is sworn in ront o a

solicitor or other person who can

administer oaths.

Agricultural PropertyRelie (APR)Relie rom Inheritance Tax

or the agricultural value o

some arms and armhouses

(the value i the land and

buildings could only be used

or agricultural purposes

and not the open market

value). Various conditions

apply, including a minimum

ownership period.

BenefciaryA person or organisation who

will receive assets rom the

estate o the deceased.

Bequests and Legacies

Bequests and legacies arenames or gits let in a will.

BusinessProperty RelieRelie rom Inheritance Tax or

businesses; a minimum ownership

period applies and the business or

interest in the business must ull

the conditions.

Capital Gains TaxThis is tax which may be payable

on a disposal (or example whenyou sell an asset) i you make

a chargeable gain. Usually you

have made a gain i the asset

is worth more at disposal than

it was when you acquired it.

A disposal is not only a sale

or moneys worth. You will

only pay Capital Gains Tax on

capital monies (monies that you

received) that do not orm part

o your income. The tax applies

not to the value o the asset butto the increase in value.

CaveatA notice entered at the Probate

Registry or example, i you

have entered a caveat you willbe warned beore any Grant o

Representation is issued.

ChattelsAssets o a person other than

land or example, jewellery,

ornaments, clothes, cars,

animals, urniture and so on.

CharityA charity is an organisation that

has as its aim purposes which

are exclusively charitable (asrecognised by law), such as the

relie o poverty or promoting

education. Charities can be

structured in a variety o ways or

example, as a company with a

board o directors or as a trust und

with a board o trustees. Charities

must be or the public benet.

Most charities must register

with the Charities Commission.

Charities are strictly regulated.

CodicilAn addition to a will which may

change, modiy, delete, extend

or add to a will.

Deed o Variation

A document that can vary thedivision o a persons estate

ater they have died, either by

changing their will retrospectively

or altering the persons entitled

on an intestacy (where there is no

will or the beneciaries no longer

exist). This must be done within

two years o the persons death.

Discretionary TrustsA trust where the trustees can

choose which beneciaries (i

any) should receive income and/or capital.

DomicileYour domicile will aect

whether you pay Inheritance

Tax on particular assets and can

aect how much Inheritance

Tax you pay. Domicile is not the

same as residence.

Estate

All the property and assets othe person who has died.

ExecutorThis is the personal



Glossary

representative (see below) who

has been appointed by the will

or codicil.

GuardianA guardian will have parental

responsibility or any child

(under 18) o whom they are

named guardian. Parental

responsibility means legalauthority to act in relation to

a child on such matters as

medical care, where they are

to live, their education and

what surname they should be

known by. Guardians may be

appointed by a parent who

has parental responsibility, an

existing guardian or the Court.

I you name a guardian in your

will, the appointment may not

take eect i your child has a

surviving parent with parental

responsibility.

Inheritance TaxA tax on the value o a persons

estate on their death and also on

the value o certain gits made

by an individual during their

lietime. You may be subject

to Inheritance Tax on all your

assets everywhere in the world

i you are domiciled in England

& Wales. Inheritance Tax alsoapplies to most types o trusts

and may be charged when

assets are added to or leave

the trusts and on the ten-yearly

anniversaries o the trusts

creation.

Intestate/IntestacyThe rules that govern where a

persons estate is to pass and

who can deal with the estate in

the absence o a will.

Joint TenancyA way o co-owning land and

other property. On the death

o one o the co-owners, the

other takes their share by

survivorship. For example,

i you and your spouse own

your home as joint tenants it

will automatically pass to the

surviving spouse when one o

you dies. Your share o your

house will not be part o your

estate as it passes automatically.

Letters oAdministrationA grant o representation where

there is no valid will, or there is a

will but no executor appointed.

Lie TenantThis is a person who is entitled

to benet rom a trust during

their lietime. They cannot have

the capital in the trust und; they

are entitled only to the income

or enjoyment o the property. For

example, i the trust und was a

house, the beneciary would be

entitled to live there.

Personal RepresentativeThe person who is dealing with

the administration o the estate

o the person who has died.

Potentially Exempt

Transer (PET)This is an outright git by an

individual to another individual

or certain types o trusts. I

the giver (donor) survives

the git by seven years it will

become completely exempt

rom Inheritance Tax, and will

be outside the donors estate

or the purposes o calculating

Inheritance Tax.

Power o AttorneyThis is a ormal document givinglegal authority rom one person

(the donor) to another (the

attorney) so that the Attorney may

act on behal o their principal.

Power o Attorney may be an

ordinary General Power or it may

be a Lasting Power o Attorney.

Lasting Power oAttorneyA Lasting Power o Attorney

can relate to your property and

aairs or your personal welare,i.e. decisions about your medical

treatment. In order to make a

Lasting Power o Attorney you

must have mental capacity to do

so, which must be certied by a

certicate provider. An ordinary

General Power o Attorney will

come to an end i you lose your

mental capacity but a Lasting

Power o Attorney will not.

Probate (Grant o)The Proving o a will by sendingit to the Probate Registry.

ResidueThe remainder o the estate o

the person who has died ater all

their debts have been paid and

any specic gits they made under

their will have also been paid.

Revocation (o will)This is the process by which

someone cancels or takesback a will (or codicil) made

previously when they no

longer intend that will to take

eect. The Testator (person

who made a will or codicil)

must have mental capacity to

revoke the will (or codicil). The

eect o revocation is that any

earlier will is resurrected and

will take eect as i the later

cancelled will does not exist. I

there is no previous will thenthe person revoking their will

becomes intestate. Most new

wills contain an explicit clause

stating that they revoke any

previous wills. There are ormal

requirements or revocation o a

will as there are or making a will.

Statutory LegacyI a person dies intestate

with a spouse or civil partner,

the statutory legacy is the

amount o the deceaseds

estate that their spouse orcivil partner will receive. A

common misconception is that

the spouse or civil partner will

automatically receive all o the

estate o the person who has

died intestate, but this is not

necessarily the case i there

are surviving children and it is

thereore desirable to make a

will to ensure that your spouse

or civil partner inherits all that

you intend them to take.

Testator/TestatrixThe person making a will (male

or emale).

A TrustA legal relationship in which one

or more persons hold property

or the benet o others (the

beneciaries). A trustee is the

person who is acting in the trust

and holds the property or the

benet o someone else.

A WillThe ormal document known as

a testamentary disposition by

which somebody conrms their

wishes as to the division o their

estate on death.

NeeD MOReINFORMATION?PLEASE CONTACT USWITH YOUR ENQUIRY


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Content o the articles eatured in this Inheritance Tax Guide is or your general inormation and use only and is not intended to address your particularrequirements. They should not be relied upon in their entirety and shall not be deemed to be, or constitute, advice. Although endeavours have beenmade to provide accurate and timely inormation, there can be no guarantee that such inormation is accurate as o the date it is received or that it willcontinue to be accurate in the uture. No individual or company should act upon such inormation without receiving appropriate proessional advice

ater a thorough examination o their particular situation. We cannot accept responsibility or any loss as a result o acts or omissions taken in respecto any articles. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts.

guide to inheritance tax planning autumn 09

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