IHT planning: Why one wrong move could prove costly

Where a client is considering a series of steps to mitigate a potential inheritance tax (IHT) liability, the order in which those steps are taken can have a marked impact on their effectiveness. Get it wrong and a great deal of IHT can become payable unnecessarily. Get it right and clients will be very grateful, although HM Revenue & Customs (HMRC) may not be so impressed. The first type of arrangement to consider should be one that involves no gift. For example, consider the client who makes an interest-free loan which is repayable on demand. This would not reduce the value of the cl...