20 Ways To Avoid Inheritance Tax In The UK

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Hello, and welcome to our channel. If you're watching this video, you're probably interested in learning about how to avoid inheritance tax in the UK. Inheritance tax is a tax that is levied on the estate of a person who has passed away, and it can be a significant burden for many families.

Fortunately, there are many ways that you can legally minimize the amount of inheritance tax that you will have to pay. In this video, we'll provide a detailed description with a list of twenty ways to avoid inheritance tax in the UK. Firstly, it's important to make a will to ensure that your assets are distributed according to your wishes. Secondly, giving away your assets is a popular way of avoiding inheritance tax, but it's important to be aware of the seven-year rule.

Thirdly, using a trust is a great way to pass on your assets to your beneficiaries, as trusts are not subject to inheritance tax. Four, investing in an AIM listed company can provide a valuable opportunity to reduce inheritance tax. These companies are often smaller and less established, but they qualify for Business Property Relief (BPR) which can reduce or even eliminate the amount of inheritance tax that is due.

Five, using a pension is another effective way to minimize your inheritance tax bill. This is because pensions are generally not counted as part of your estate for inheritance tax purposes. Six, taking out life insurance can also help to cover the cost of any inheritance tax that may be due. Seven, using Business Property Relief (BPR) is a way of reducing inheritance tax on assets that are used in a business or are related to it. Eight, Agricultural Property Relief is another relief that can reduce inheritance tax on agricultural land and property.Nine, investing in forestry can qualify for a range of tax reliefs, including income tax relief, capital gains tax relief, and inheritance tax relief. Ten, making gifts to charities can be an effective way of reducing your inheritance tax bill, as gifts to registered charities are exempt from inheritance tax. Eleven, making gifts to family and friends is another way to reduce the size of your estate and lower your inheritance tax bill. Twelve, if you have a spouse or civil partner, you can pass on your estate to them tax-free.Thirteen, leaving assets to a political party or a community amateur sports club can also be exempt from inheritance tax. Fourteen, investing in shares that qualify for the Enterprise Investment Scheme can help to reduce your inheritance tax bill.

Fifteen, investing in shares that qualify for the Seed Enterprise Investment Scheme can also help to reduce your inheritance tax bill. Sixteen, investing in Venture Capital Trusts can provide valuable tax reliefs, including income tax relief and exemption from capital gains tax. Seventeen, making use of the Nil Rate Band is another way to minimize inheritance tax. This is the amount that you can leave tax-free, currently set at £325,000.

Eighteen, using the Residence Nil-Rate Band can also help to reduce your inheritance tax bill if you leave your home to a direct descendant.Nineteen, making use of the Transferable Nil Rate Band is another way to reduce inheritance tax if you're married or in a civil partnership.

And finally, twenty, seeking professional advice from a solicitor or tax specialist can help you to navigate the complex rules and regulations around inheritance tax and ensure that you're taking advantage of all the available reliefs. So there you have it, a detailed list of twenty ways to avoid inheritance tax in the UK. We hope that you found this video useful. If you did, please give it a thumbs up and subscribe to our channel for more informative content