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Home / News and Insights / Press / How to mitigate UK Inheritance Tax intelligently

In an article for Wealth Briefing, partner Hugo Smith notes that due to fiscal drag and ever-rising house prices IHT is becoming a problem for more people. He suggests that taking advantage of gifts via normal expenditure out of income and other options such as pensions will become more urgent.

Hugo Smith states:

‘As house prices continue to increase, more and more taxpayers are caught in the inheritance tax net and for every £1,000 increase in property values, £400 will ultimately go to the Treasury. While the Residence Nil Rate Band (introduced in 2015 on top of the ordinary Nil Rate Band) can allow married couples to leave an additional £350,000 free of tax, it is only available where the property passes outright to direct descendants, and where the taxable estate is less than £2 million. It is therefore important to ensure that your will is structured so that assets pass outright to descendants, rather than in trust for them. If your estate is around £2 million, it may be advisable to make some lifetime gifts to keep it below that level.’

The full article can be read on the Wealth Briefing website.

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