IHT: Beware the lifetime gifting traps

It is said that inheritance tax (IHT) is optional. While this is not wholly accurate, the UK does have a very favourable lifetime gifting regime, which can be taken advantage of to minimise IHT on an individual's death. IHT is payable by UK domiciliaries on their worldwide estate and by non-UK domiciliaries on their UK situated assets only. However, in the event an individual has been resident in the UK in 17 of the past 20 tax years, they will be deemed domiciled for IHT purposes and will, therefore, fall fully within the IHT regime. Fortunately, there are a number of exemptions to I...