Inheritance tax (IHT) shelters are no longer just for very wealthy investors. According to new research, there has been a rise in the marketing of inheritance tax shelters, with business property relief plans increasingly sold to those with smaller estates.
The report explains that business property relief is now “particularly relevant to people who are subject to a potential IHT bill in the range of £15,000 and £40,000,” whereas previously the £50,000 minimum subscription levels would have made it unfeasible for them to use this option.
It goes on to explain that people can now meet the lower limits “and invest an amount which just offsets their potential IHT liability.”
Adding to the growth in popularity of business property relief as a tax planning strategy is the fact that its IHT eligibility period is just two years, instead of the usual seven years on gifts.
Do your business interests qualify for IHT business property relief?
Our Beavis Morgan tax experts are available to guide you and advise you on the available strategies. If you would like to know more, please contact Barrie Dunning or your usual Beavis Morgan Partner.
Through careful planning, IHT can be mitigated. We do however recommend that planning starts as early as possible.