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Tips for Reducing Your Inheritance Tax Liability

Sasha Owen
Tax

Make Use of Exemptions

    • Annual Gift Allowance: You can gift up to £3,000 annually without it being subject to IHT.
    • Small Gifts Exemption: Gifts of up to £250 per person are exempt.
    • Wedding Gifts: You can give tax-free gifts for weddings, up to £5,000 for a child.

Gifting Assets

    • Larger gifts made more than seven years before death are exempt from IHT under the seven-year rule.

Consider Trusts

    • Placing assets in a trust can reduce IHT liability while allowing you to retain some control over the distribution of your estate.

Charitable Donations

    • Leaving 10% or more of your estate to charity reduces the IHT rate on the remainder from 40% to 36%.

Review Your Estate Plan Regularly

    • Regularly reassess your will and estate plan to account for changes in laws and personal circumstances.
Hypnotherapy and Psychotherapy, Tax, therapists

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Sasha Owen
Sasha Owen BSc FCA qualified as a Chartered Accountant in 1983 and has been in practice as an accountant since 1987. If you think Sasha has the conventional image of an accountant then you couldn’t be further from reality. Sasha is a Reiki Master, loves the arts, music and theatre; having been on stage herself and worked backstage she really does have a deep understanding and love for the arts and alternative therapy world.

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