Inheritance tax avoidance help - who to consult

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  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    kidmugsy wrote: »
    OK; tell us how the OP can eliminate it.

    Sell a house.
    Start spending & giving.

    The OP has said they are asset rich/cash poor but not touched on income or age or how they plan to distribute their estate.

    There will be other options

    if they do have the full transferable nil rate band that's £650 to give out, give the rest to charity.

    ...
  • statex
    statex Posts: 38 Forumite
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    “
    Every part of our estate over our nil rate bands has either come through house price increase, capital gains though from investments or inherited money. We have not paid a penny of tax on any of that.
    Originally posted by Keep pedalling

    So you did not pay tax on the money that paid you mortgage.
  • statex
    statex Posts: 38 Forumite
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    There is one way to avoid all tax including IHT, CGT and income tax legally.

    Forestry. Investments and income from forests are tax free. The forest has to be commercially managed. Check it out. For instance Terry Wogan had 11 million invested in forests and only paid IHT on the remaining Million.

    An acre of forestry land sells for less that 10K therefore a couple of hundred K can buy you a good size plot. There are several companies that will manage it for you and the costs can be covered by the sale of timber , which is tax free.
  • Keep_pedalling
    Keep_pedalling Posts: 16,641 Forumite
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    statex wrote: »
    There is one way to avoid all tax including IHT, CGT and income tax legally.

    Forestry. Investments and income from forests are tax free. The forest has to be commercially managed. Check it out. For instance Terry Wogan had 11 million invested in forests and only paid IHT on the remaining Million.

    An acre of forestry land sells for less that 10K therefore a couple of hundred K can buy you a good size plot. There are several companies that will manage it for you and the costs can be covered by the sale of timber , which is tax free.

    The OP would have to sell property to buy forestry, so loses rental income and will probably have a tidy CGT liability to meet so probably not that practical.
  • BobDown
    BobDown Posts: 7 Forumite
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    lincroft1710 wrote: »
    Why do people worry so much about inheritance tax? They certainly won't pay it! Their beneficiaries if non spousal will have have a windfall anyway.

    Because the greedy grabbing government shouldn't be able to take it. Its the principle.
  • BobDown
    BobDown Posts: 7 Forumite
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    littlebranshill wrote: »
    I want to leave it to my goddaughter and a friend. Didn't want to leave it to charity.

    Damn right, don't leave it to charity, you want all your money to go where you want it to.
  • Keep_pedalling
    Keep_pedalling Posts: 16,641 Forumite
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    BobDown wrote: »
    Because the greedy grabbing government shouldn't be able to take it. Its the principle.

    So your principle that those lucky enough to inherit considerable sums of money without lifting a finger to earn any of that should get it totally free of tax, while those why have to work to earn every penny of their money have to pay tax on it. That does not seem fair to me.
  • Keep_pedalling
    Keep_pedalling Posts: 16,641 Forumite
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    statex wrote: »
    “
    Every part of our estate over our nil rate bands has either come through house price increase, capital gains though from investments or inherited money. We have not paid a penny of tax on any of that.
    Originally posted by Keep pedalling

    So you did not pay tax on the money that paid you mortgage.

    Yes We did, but the value of my house has grown 10 fold over what we paid for it and it is only that uplift in valuation that brings us into IHT territory.

    The nil rate band and primary residents nil rate band mean that we should be able to leave our children £1M tax free, and lifetime PET gifts to get them on the property ladder means they will receive a good deal more than that tax free, they really have little to complain about that anything left over that is going to be subject to tax.
  • adonis10
    adonis10 Posts: 1,810 Forumite
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    Keep_pedalling wrote: »
    So your principle that those lucky enough to inherit considerable sums of money without lifting a finger to earn any of that should get it totally free of tax, while those why have to work to earn every penny of their money have to pay tax on it. That does not seem fair to me.

    And those who don't lift a finger to earn money tend to get everything paid for them, including care which also isn't fair. Life isn't fair, but that is how it is.
  • le_loup
    le_loup Posts: 4,047 Forumite
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    BobDown wrote: »
    Hi all - i'm new here and its my first post, so go gently.
    Post 1
    BobDown wrote: »
    Because the greedy grabbing government shouldn't be able to take it. Its the principle.
    Post 6
    BobDown wrote: »
    Damn right, don't leave it to charity, you want all your money to go where you want it to.
    Post 7

    So you certainly joined with a bang. What's got you so riled?
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