An area of tax planning that has become increasingly popular in recent years is the use of business property relief (BPR) in the mitigation of inheritance tax (IHT) liabilities.
In 2010–11, public finances continue to be dominated by the aftermath of the global financial crisis and recession, with a pressing need to cut government borrowing.
The possibility that a FTSE 100 company may move to AIM has caused concern in some quarters that this could threaten the current generous tax status of the market.
Quite separately from tax on your estate, potentially exempt transfers and taxable gifts you made in the last seven years are reassessed on death and tax (or extra tax) may be due on them.
When considering inheritance tax, if you do have some resources to spare, make as full use as possible of the annual £3,000 exemption, regular gifts out of income and such like.
UK taxpayers will waste nearly £2 billion this year due to poor inheritance tax (IHT) planning, according to the annual Tax Action report by unbiased.co.uk.
By making gifts to their family via gift plans, grandparents can place any growth on the investment outside their estates immediately.
Dying without a will - ‘intestate’ in legal terminology - means that your estate will pass according to the rules of intestacy.
The nil-rate band remains at the 2009–10 level of £325,000 and will remain at that level up to and including the 2014–15 tax year.
When you die, everything you own – your home, possessions, investments and savings – goes into your estate.