Sep 4 2006
Those liable to pay inheritance tax (IHT) have been advised to make use of existing exemptions amid fears that such avenues may be closed in the future.
Included in the advice by Vantis, an accountancy, tax and business advisory group, are suggestions to maximise business property relief, use potentially exempt transfers, certain annual exemptions and spouse exemption and make charitable donations.
Peter Legg, head of IHT planning matters at Vantis, made note of recent moves by the government to close certain methods of IHT avoidance.
"Whatever the reason or logic behind the proposed changes, there has been a gradual erosion of a once relatively liberal IHT regime and it's likely that this will continue," he said.
"We are strongly recommending that high net worth individuals and intermediaries ensure that they are taking the basic steps to mitigate the potential IHT liability," he added.
Last week Labour MP Stephen Byers defended his statements supporting the abolition of IHT in the face of criticism from some in the government.
He reported that the number of estates liable for the tax had tripled to six per cent since 1997.
