According to a recent report, the deputy leader of the House of Lords, Lord Howe, received a tax break potentially worth millions of pounds when he inherited his £30m country estate. The report says he was able to avoid paying full IHT (then known as capital transfer tax) on the 1,550-acre Penn estate in Buckinghamshire, after striking a confidential deal with HMRC.
Whilst most of us will have more modest estates, especially if a residential property is included, there are still many individuals and families with estates estimated to be above the threshold for paying IHT. The tax free allowance of £325,000 hasn’t been increased for several years, although there is now an increasing allowance against a family home left to direct descendants.
With IHT receipts forecast to soar, it’s essential that families seek advice on how to mitigate IHT in order to secure the financial future of their beneficiaries.
IHT can be mitigated by forward planning and 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.