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How to reduce UK Inheritance Tax, IHT

I have just retired and im think about IHT. I have heard about exempt transfers. Any ideas how I can reduce IHT bill using these exempt transfers.

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    Exempt transfers are gifts of various amounts which can be made during your lifetime to various beneficiaries with no IHT liability, and are good ways of avoiding inheritance tax.

    And these can include:

    All transfers between UK domiciled spouses/registered civil partners are exempt for IHT

    Potentially exempt transfers (PETs) Gifts can be made which do not fall within the above list of exempt transfers are only exempt from inheritance tax if you live for seven years after making the gift, so they are referred to as potentially exempt transfers.

    Exempt gifts- Some gifts made during your lifetime are exempt from Inheritance Tax because of the type of gift or the reason for making it like wedding gifts, gifts from parents upto £5,000 etc . You can also give away gifts worth up to £3,000 in total in each tax year and these gifts will be exempt from Inheritance Tax when you die.

    Regular gifts or payments that are part of your normal expenditure. Any regular gifts you make out of your after-tax income, not including your capital, are exempt from Inheritance Tax. These gifts will only qualify if you have enough income left after making them to maintain your normal lifestyle.

    Its also worthy pointing out you can make sure your life assurance policies are included in your will and then they are specifically excluded from your estate, further reducing the nil band of £325k.

    Transfers through trusts. You may to engage a trust financial adviser to us a trust to preserve family wealth.

    Shares qualifying as ‘business property investments’ in certain AIM-trading companies – or unquoted trading companies –can attract 100% relief from IHT, provided that: The investment is held for at least two years or before a chargeable transfer for IHT purposes takes place (such as a transfer to a trust). And they are still held by the transferee at the death of the donor.

    Regards

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