Pixel

How To Save £400k On Your Inheritance Tax Bill

Gary Green
Gary Green
January 14, 2020

Would you like to know how to use a concept called Deed of Variation to get money off your inheritance tax?

An interesting article in the Telegraph today about a man who saved £400k on his inheritance tax bill. (The content is Premium but you can access it for free with a sign up).

A couple of caveats before we jump in:

  • Please ensure you get professional advice from a lawyer, accountant or tax expert before making financial decisions
  • We'll summarise the main ideas in this blog, but do please read the full article on the Telegraph website

How Peter Hollick Saved £400k

The man in the Telegraph article was able to reduce his tax bill by using something called a Deed of Variation.

This allows you to change a person's will after they die. According to the HMRC page, you can change a will to:

  • Reduce the amount of Inheritance or Capital Gains Tax payable
  • Provide for someone who was left out of the will
  • Move the deceased’s assets into a trust
  • Clear up any uncertainty over the will

You can change a will as long as:

  • You make the changes within two years of the death
  • The changes would have been in line with the best interests of the deceased

In Mr Hollick's case, he was able to transfer the money into a trust, which allowed him to avoid the inheritance tax while still retaining some control over the money.

Inheritance Tax - Other Options

Rewriting a will (as per the Telegraph article) is one way to reduce your tax burden. But there are other things you can consider.

You may be able to take advantage of something called an usufruct. This is a specific part of property law that allows you to use the property owned by another person.

Check out our articles on Usufruct & Inheritance Tax and What is a Usufruct for a more in depth look at the subject.

How We Can Help

Dealing with finances when someone dies can be a stressful experience. There can often be a lot of paperwork, especially if any aspects of the will are complicated or contested.

This is where it can be useful to bring in a professional. It's within the rules to handle the paperwork if you're just a friend or relative. But it can smooth the process to use a professional lawyer or accountant.

We are delighted to let our readers know that Key Business Consultants have passed our exams to apply for authorisation to handle the probate process for our clients. We can arrange a no obligation meeting at your home or office to talk through the necessary steps and how we can help.

If you'd like to discuss how Key Business Consultants can help you save money on inheritance tax, please get in touch.

Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
Contact Form Demo (#1)
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
October 23, 2023
PAYE Investigations

Dive into the world of PAYE investigations. Uncover the facts, implications, and insights in this informative blog

September 29, 2023
London-based accountancy business acquired by Key Business Consultants

Exciting Merger Alert: London's Reed Taylor Benedict & Benedict Leff Accountants Acquired by Key Business Consultants.

September 18, 2023
Tax Tribunals – An Overview

Dive into the realm of Tax Tribunals: A comprehensive overview shedding light on this crucial aspect of taxation.

September 2, 2023
What Is A COP8?

Learn about COP8, a tax-related Code of Practice issued by HMRC for suspected tax avoidance cases. Discover when COP8s are used and the penalties associated with them.

August 20, 2023
HMRC Compliance Checks

Navigate the complexities of HMRC compliance checks confidently. Our comprehensive guide covers everything you need to know about handling tax inspections and more.

August 6, 2023
Tax Evasion and Tax Fraud

Untangling the complexities of tax evasion and fraud. Delve into our comprehensive guide to understand the differences, consequences, and preventive measures.

June 18, 2023
Which Jobs In The UK Have The Best Salary Growth Potential?

Explore the top UK jobs with the highest salary growth potential. Uncover promising career paths and industries that offer substantial earning potential.

May 23, 2023
How To File Dormant Accounts Through Companies House

Learn the step-by-step process of filing dormant accounts through Companies House with our comprehensive guide.

May 19, 2023
Customs Declaration Service (CDS) and VAT

Discover how the Customs Declaration Service (CDS) and VAT intertwine in this insightful blog article.

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
Newsletter Form (#2)
We care about the protection of your data. No spam. Unsubscribe anytime.
Copyright © 2022 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram