INDEPENDENT FINANCIAL ADVICE CENTRE

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Your Home is at risk if you do not keep up any mortgage or payments secured upon it!

You should remember that past performance is not necessarily a guide to the future. Market and currency movements may cause the value of units, and the value derived from them, to fall as well as rise and you may get back less than you invested when you decide to sell your units. The tax treatment of investments and pensions is not guaranteed and may change in the future.  

Make an irretrievable gift to a trust.

For an IHT perspective the gift will be treated as either a PET (potentially exempt transfer) or a chargeable lifetime transfer (CLT) depending on whether you use an absolute or settled property trust. This would be useful if you did not want the gift to be immediately available to your children.  


Discounted Gift and Income Plan

This would allow you to make a partially IHT exempt gift immediately with the balance treated as a PET (potentially exempt transfer) yet retain the right to a fixed income for life (or until the trust fund is exhausted). You could make an irretrievable gift that will be treated as either a PET or a chargeable lifetime transfer (CLT) depending on whether you use an absolute or settled property trust.


The value of the gift is deemed to be worth less than the amount of the investment by the Inland Revenue due to the fact that certain rights have been retained. The retained rights are actually valued at outset according to age, life expectancy and frequency and amount of income. As the retained rights have no value on death, an immediate reduction in the estate is achieved. The entire gift will fall out of account after seven years.


Loan Trust

This would prevent an IHT problem on a particular investment from getting any worse by ensuring that the future investment growth accrues outside of your estate.

This is achieved by loaning Capital to a trust. There is no gift for IHT purposes as this only a cash loan to the trust.


The loan is repayable on demand either on an ad-hoc basis or as regular income.The outstanding loan remains an asset of your estate unless/until repaid or gifted under an exemption.. A loan trust is a flexible arrangement which allows for the income amount and frequency to be varied according to circumstances.


Aim Shares

Certain AIM shares benefit from Business Property Relief (BPR). This means that once the shares have been held by an investor for a minimum of two years they are exempt from inheritance tax. Investors holding these shares in their ISA for the two-year qualifying period should benefit from virtually no taxes while they hold the share, and no potential inheritance tax liability.


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IHT Schemes