The recent reports that HM Revenue & Customs plans to make all donations to Ukip prior to 2015 liable for inheritance tax (IHT) is just another example of the complexities of this form of tax.
The letter of warning, described by Tim Shipman in the Sunday Times as a “witch hunt” against leading supporters of Brexit, states that any payments made prior to the 2015 general election will be liable for tax if the recipient dies within the next seven years.
This further demonstrates that, by not understanding the rules relating to IHT, families could unnecessarily end up paying tens or even hundreds of thousands of pounds in tax.
Through careful planning, IHT can be mitigated. We do however recommend that planning starts as early as possible.
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.