Insurance is an 'underutilised tool' against inheritance tax

Insurance could be used as the government closes other loopholes

Isabel Baxter
clock • 1 min read

Insurance is an "underutilised tool" when it comes to dealing with large inheritance tax (IHT) bills, according to national IFA Continuum.

More than £7bn a year is now collected by HM Revenue & Customs (HMRC) from IHT and Continuum believes the tax take is "set to soar" over the next five years. With the government closing many of the loopholes around the use of trusts and pensions to avoid IHT, insurance is an "underutilised tool against the inevitable", Continuum argued. Chartered financial planner Ben Alcock said: "Trusts used to be a simple answer to pass down wealth tax efficiently, but they can be complicated and many of the loopholes that made them so effective in the past have been closed. "Giving wealth away ...

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