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IHT (Inheritance tax) Relief

Aim portfolios for Inheritance Tax  (‘IHT’) Relief


This is a complex area, and you should take professional advice.    The comments below are for information only, and are not a recommendation.

In his pre-budget report in autumn 2007 the Chancellor announced tht the IHT allowance of £300,000 per person (the nil rate band) is now transferrable between married couples and civil partners, so that it is now possible for a couple to shelter up to £600,000 from what used to be called death duty.  In fact this was fairly commonly done already by writing a trust into your will, but that is no longer necessary.

Beyond £600,000, it is possible to arrange IHT relief through owning farms or family businesses, but also through ownership of certain shares traded on Aim which qualify for 100% IHT relief if held for at least two years.     To spread the risk over a portfolio of such shares, some  20 UK asset management firms have set up  ‘IHT portfolio funds’ which offer a range of investment strategies’.

For example (and not recommendation) see     Rathbones IHT Portfolio service  Gerrard Aim Portfolio service   if your investment has fallen in value when you die, a built in life assurance will cover any loss


See also:  the tax man’s guide to business assets relief