Inheritance tax: British urged to give gifts to legally reduce IHT bill | Personal Finances | Finance


This is not surprising because rising house prices and rising investment markets have resulted in an increase in the volume and value of estates caught in the inheritance tax net. In an exclusive interview with, financial advisor Emmauel Asuquo discussed the importance of retirement planning to ensure that people pay as little inheritance tax as possible.

This rate is something Mr. Asuquo called “crazy”.

He added: “Imagine if you are a 40% taxpayer, you paid 40% when you earned your money in taxes, and you also pay 40% when you die.

“Regarding the IHT, I want everyone to understand that this is a voluntary tax, so it is a tax that you choose to pay.

“One thing we all know is we’re going to die, what we need to look at is how to pass those assets to the next generation in the most tax efficient way.

“If you wait until you die and walk away, then it’s all up to the laws and they’ll come and take 40 percent after your allowance.”

It is important for Britons to understand the value of retirement planning and to think about other options for sharing their wealth.

Carefully planned lifetime giving can be a useful tool to reduce inheritance tax (IHT) after retirement.

Mr. Asuquo continued, “For me, it’s really important to understand that, ‘Okay, I’m building my estate, and I’m building that wealth, whether I have kids, nieces, nephews, or friends. ‘

“But give it to someone you choose and take your pick rather than giving it back to the government just because you didn’t plan it.”

No inheritance tax is paid on gifts between spouses and civil partners, provided they live in the UK.

Taxpayers can also offer wedding or civil ceremony gifts up to £ 1,000 as part of the exemption.

Everyday gifts, such as birthday or Christmas gifts, may also be part of the exemption.

However, taxpayers must be able to maintain a certain standard of living after making the donation.

Mr Asuquo concluded, “For me, it’s about taking this advice, asking for advice, and making sure that the hard work you’ve put in over the years to build this … is not handed over to the government. . “

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