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Exemptions, reliefs or something else – what to do about IHT?

68 min watch 16 Jun 22

As each month passes, we see reports of how there's been yet another month of record inheritance tax (IHT) receipts.  

Looking at the big picture, the government's IHT take is not a lot of money compared to other taxes. But when we focus on the tax paying estates the average IHT bill is around £200,000 – a lot of money and much higher than most people's tax bills!

On this webinar we looked at why receipts are rising, how you can tackle an IHT bill and what's stopping people doing so.  

This session should help you gain a better understanding of:

  • Describe the reasons IHT receipts are rising
  • Evaluate the different options available to mitigate an IHT liability
  • Estimate the likely IHT liability someone will have
  • Describe how standard insurance company trusts can help clients with their IHT planning

Presenters – Les Cameron – Head of Technical
                         Graeme Robb – Senior Technical Manager

To claim your CPD certificate, test your knowledge with the questions below.

Write down your answers to each of the following questions and check your answers when you click through to claim your CPD certificate on the link below.

Test your knowledge

1. Which of these lifetime IHT exemptions has no monetary limit?

a. Annual Exemption

b. Small gifts

c. Gifts in consideration of marriage or civil partnership

d. Normal expenditure out of income
 

2. Which of these statements is correct regarding the £2m RNRB taper threshold?

a. The RNRB £2m taper threshold also applies to the NRB

b. When working out how much the estate is worth you do not deduct reliefs such as Business Relief

c. Based on a RNRB figure of £175,000, there will be no RNRB if the estate exceeds £2.175m

d. When working out how much the estate is worth you deduct reliefs such as Business Relief
 

3. Trust planning for a UK resident but non-UK domiciled client would typically involve.

a. A statutory Trust?

b. An overseas Trust Company?

c. An Included Property Trust?

d. An Excluded Property Trust?
 

4. How do you set up a loan trust?

a. Settlor sets up the trust. Settlor lends money to the trustees. The trustees then apply for a bond

b. Settlor sets up the trust. The trustees apply for a bond. The settlor then gifts money to the trustees

c. Settlor lends money to the trustees. The trustees then set up a trust. The trustees then apply for a bond

d. Settlor applies for a bond. The settlor sets up a trust. The settlor lends the bond to the trustees

To claim your CPD certificate, click here.

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