Brits urged to prioritise IHT planning

Monday, November 9th 2009

It is important that Britons make inheritance tax (IHT) planning a priority despite a widespread belief that it is no longer important.

This is according to AXA Wealth International chief executive Kevin Dean, who said that the introduction of transferable nil-rate band legislation may have led many people to become complacent about IHT issues.

However, he explained that the rules do not cover lifetime partners and are only applicable to married couples or civil partners.

"Individuals cannot rely on this legislation solving their IHT issues and should really look at the planning tools available such as discounted gift schemes and loan trusts," Mr Dean remarked.

Under transferable nil-rate band legislation, the unused part of the nil-rate band is transferred to the surviving spouse or partner when the other dies and is used to work out their own IHT liability when they pass away.

Assets that pass between spouses are exempt from IHT charges.