that you can avoid Inheritance Tax after just 2 years instead of the usual 7 years?

Yes it’s true you can avoid Inheritance Tax after just 2 years instead of the usual 7 years.  If your assets are over the Inheritance Tax threshold, you have various choices.  Say your estate is £300,000 over your allowance.  That’s an IHT liability of £120,000.  You have various options. 


Firstly you could do nothing and just hope that the Inheritance Tax goes away.  That’s not going to happen.


Secondly you could take out an insurance policy to pay the Inheritance Tax but that’s all it does.  It pays the Inheritance Tax it does not make it go away.


Thirdly you could gift the £300,000 to your children as a 7 year Potential Exempt Transfer.  If you survive the 7 year period then that gift will be IHT exempt.  However you will have lost control.  If you die within the 7 years there is no discount.  Taper Relief would not work in this case.


McClure’s preferred solution is to use a Business Relief investment.  There are many companies who provide this option and you can invest in say 3 different companies to spread the risk.  The advantage is that (provided you hold the investments until you die) the IHT goes away after just 2 years. 


And you keep control.  And you can take an income.  You can even change your mind.  And if you are married you still get the exemption as long as one of you survives the 2 year period. 


Even better still, after the 2 year period, because the investment is IHT exempt, you can protect the sum in a Trust to avoid your children’s IHT.


No-one knows what is ahead.  There is too much at stake to take the risk of surviving the 7 year period.  The 2 year option is a much safer bet.


Just contact us on 0800 852 1999 or email to arrange a chat with one of our Estate Planning Consultants. 


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Call our dedicated appointments line today or complete the form provided to arrange your first meeting with McClure. It will cost you nothing and could save you and your loved ones money, time and hassle.

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