IHT and the ED family

[*Bob*]

Why is it that the government prints out a nice glossy brochure and posts it to every new parent showing them how to fit a car seat properly, but for this piece of information you have to either read the Mail or access the Revenue's website?

Just saying the information 'is available' doesn't mean it gets there. And the ones who don't get it are probably the ones who really need to.

[Keef]

Hmm, this is rather dull ;-)

[lordship_bod]

while i do agree that the information is out there (has anyone looked at the finance act 2006 for a bit of light reading? - apparently it changed trust law which offered a loop hold for IHT) would anyone disagree with the fact that the richer you are the more likely it is you can "buy" the required advice to avoid IHT?

We can all visit a number of websites which may give us an insight into how we can avoid this tax but unless you do it for a living, you probably are not going to know what is the most efficent way of avoiding IHT for your personal circumstance. I agree with *Bob* the people who could really do with legitimately avoiding this tax are hardly in a position to pay for the advice they need.

And while i dont disagree with paying taxes to run the country i live in, it would be nice, just for once for someone to show me that the money i pay in taxes is actually doing some good for this country....ok, that another thread altogether...

[SeanMacGabhann]

(and THAT thread would turn out to be a very long one I imagine)

[James]

So what's the best way to avoid this tax then? If I get mum and dad to gift the house to me, can they still live there?

[Alan Dale]

That would prevent IHT assuming they lived for 7 years after they gave you it but they have to pay a fair market rent to avoid it being classed as a 'gift with reservation of benefit' and then you have to pay income tax on that rent.

I doubt they'd go for it.

You should at least set up their wills so that when one of them dies they give their half to you and then when the next one dies you get the second half. Without a will it will automatically pass between spouses so the last one to go will leave you the whole house with only one nil band.

The other way you make full use of both their allowances. (ie only pay tax on amount over ?600k rather than amount over ?300k)

It's worth getting a solicitor involved as it will only cost you a couple of grand and could save thousands.