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.
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
May 5, 2021
How To Reduce Corporation Tax by Claiming Creative Industry Tax Reliefs

Creative Industry Tax Reliefs (CITR) are a collection of Corporation Tax reliefs that allow qualifying companies...

April 27, 2021
National Minimum & Living Wage Considerations For Employers

One of our most important jobs, as employers, is to help control payroll costs. However, one...

April 20, 2021
Employment Allowance: How to Make and Backdate a Claim

The Employment Allowance allows eligible employers to reduce their National Insurance liability. The allowance increased to...

April 20, 2021
How to Get an Overseas Employee Set Up on UK Payroll

Getting an overseas employee set up on UK Payroll can be complex. Employers in the UK...

April 15, 2021
How To File Your Company End-of-Year Accounts For The First Time

If you have recently setup a new limited company or are thinking of doing so, then...

April 13, 2021
How Does Equity Crowdfunding Work? All You Need to Know

In this article, we uncover the ins and outs of equity crowdfunding and the key considerations...

April 8, 2021
Why You Should Set Up a Trust To Cut Inheritance Tax

Inheritance Tax (IHT) is levied on a person’s estate when they die and can also be...

April 1, 2021
The Best Tax-Efficient Options To Pay Yourself As A Business Owner

Most director shareholders want to ensure that they pay the combined lowest rate of tax possible...

March 29, 2021
Chancellor Warns Businesses to Keep Offices – But Remote Working Is Here to Stay

Despite the UK's 'work from home' guidance likely to come to an end in late June,...

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
We care about the protection of your data. No spam. Unsubscribe anytime.
02037 282 848
Mon-Fri 9am - 5.30pm
contact@keybusinessconsultants.co.uk
expert financial advice at your fingertips
Copyright © 2021 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