Avoiding the tax mousetrap

The gift & loan trust – sometimes simply a loan trust – is a very popular weapon in the financial planner’s armoury. It is one that, if used correctly, can save clients from the ravages of inheritance tax (IHT). The best way to illustrate what can happen is by way of a case study. So let me introduce to you Mr & Mrs King, otherwise known as Charles and Anne. As with many people, Charles doesn’t like paying tax and is determined that HMRC will not get more than their fair share, even after he has gone. After discussions with his professional adviser, Charles and Anne like the idea of not ...