Inheritance tax – the Grim Reaper
You're trying to reach a page that is behind our paywall.
You can sign up to read it by pressing the Patreon button below - thanks.
Patreon is a membership platform that helps people take out monthly subscriptions to online content they want to support.
You can sign up to read it by pressing the Patreon button below - thanks.
Patreon is a membership platform that helps people take out monthly subscriptions to online content they want to support.
Unlock with Patreon
Hi Mike
V interesting – I’ve been doing some IHT planning for my Mum since Dad died a couple of years back. Couple of comments :
1) I don’t think IHT on PETs tapes in the way you suggest; at least not for relatively small sums.
2) You have to hold the AIM shares directly – held via Unit Trusts / Investment Trusts is no good. Don’t know enough about VCTs / EIS schemes.
3) There are plenty of good AIM companies to invest in (we hold 50+) – and even more bad AIM companies NOT to invest in! Many of the big/headline ones (eg Halstead / Nichols) seem perennially expensive – possibly buoyed up by IHT portfolio managers?
By all means get in touch directly for a chat.
Andy
Thanks Andy, that’s really helpful.
I know the PET taper rules are complicated (the taper applies to the amount of gifts over the £325K limit, I think), but we probably won’t be going down that route.
I’ll definitely take you up on the offer of a chat once I’ve drawn up my shorltist of AIM firms.
I tend to agree with Merryn Somerset Webb that inheritance should be taxed as income; i.e. inheritance is simply a windfall income for the living. Get rid of the ridiculous profusion of exemptions and just tax as income. Simple, but of course unlikely to ever actually happen.
I guess we’ll have to agree to disagree – I think it already has been taxed as income.
Interestingly, your preferred approach is the one the government has taken for pensions. You pass on the pension, and as the recipient withdraws money, it’s taxed as income, just like your own pension would be.