There is a highly beneficial, if slightly obscure, tax break that has been largely overlooked by the financial planning community when considering the IHT affairs of high-net-worth, high-earning clients, writes Paul Wilcox.
This is what is technically termed the ‘normal expenditure' rule but, for people in the know, is more commonly called ‘gifts from income'. Not only is this a wonderful tax break but the other, very specific benefit, which is not really available anywhere else - particularly in the case of gifts linked to normal conservative investment strategies - is the instant full exemption from inheritance tax (IHT) … not after two years or even seven years, but from the very same day that gifts are made. Such gifts do not use any other allowance or exemption but are instantly out of any future IHT c...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes