References in periodicals archive ?
This, in addition to the PS325,000 already in operation, will amount to a PS500,000 inheritance tax threshold per person.
There area number of ways you can mitigate your inheritance tax liability, including:A whole of life insurance policy - which generates a payment on death to cover any tax that may be due; putting money into tax-efficient |trusts for future generations, and gifting to charities - if you gift at |least 10% of your estate to charity the inheritance tax on the rest of your estate is reduced to 36%.
Paul reports that most UK companies listed on the Alternative Investment Market (AIM) qualify for BPR, and an investment in these companies would be exempt from inheritance tax after two years as long as the shares were still qualifying shares for the purpose of BPR and continued to be held at the date of death.
Some measure of Inheritance Tax relief might be available where the donor survives at least three years from the date of gift.
The original inheritance tax thresholds and gift allowances were set so that inheritance tax was originally a tax on the wealthy.
A senior Labour source said: "The Tories are aggressively exploiting this way of avoiding inheritance tax to boost their coffers.
If one was still concerned about an increase in investment risk then, theoretically, one could adopt a more conservative approach with their other investments which could enable one to achieve significant inheritance tax savings without necessarily increasing the risk of one's investment portfolio overall.
Even so, from 2010 the inheritance tax allowance will rise to pounds 350,000 per person, or pounds 700,000 for married couples.
Confusion over the policy will heighten speculation over a split between Mr Clarke and shadow chancellor George Osborne, who announced the plan to abolish inheritance tax on estates of less than Au1 million at the Conservative Party conference in 2007.
In his view, it is impossible to put a price on good financial advice, especially when facing the potential pitfalls of Inheritance Tax.
New Halifax research, based on data from the Inland Revenue, shows that inheritance tax revenue hit a record GBP1.