How to save IHT on family home and other properties

[Deleted User]

Keep_pedalling said:

Densol said:

macman said:

Densol said:

macman said:

Starting from a reduced net income of £76K, assuming your expenditure is no more than (wild guess) £30K, then you should be able to accumulate towards a further lump sum at the rate of nearly £4K a month. or nearly £50k in 6 months.

I have an expensive beauty regime !  

But what your saying is, keep money in my name, save up chunks of lump sum, and then transfer it, so its definite PET gifts and easily documented ? 

I'm not suggesting anything. I'm just trying to understand why, with your level of regular income, you are apparently unable to accumulate large cash sums within a relatively short period of time.

I just spent my last £120k in September on most recent BTL 

Maybe you should diversify a bit, you seem to sticking everything into property which makes IHT planing a lot more difficult than it is with liquid assets. You already have way more income than you need so why buy another property to get yet more income when you could have gifted that money as part of you tax planning? How much are you putting into your pension? 

Many thanks 

My pensions are already in payment. One is mostly tax free and the other a DB pension. Properties here in Greater London do increase a lot. I guess its how I made money so its familiar to me. Also I wasn't really thinking about tax planning when I bought it, but in the last few months, its kind of dawned on me lol 

Now I just want to give money to my sons (or invest money for my sons in their name etc ) - so could maybe look at investment vehicles - I might pop over to the investment forum 
cheers  

Keep_pedalling

Densol said:

Keep_pedalling said:

Densol said:

macman said:

Densol said:

macman said:

Starting from a reduced net income of £76K, assuming your expenditure is no more than (wild guess) £30K, then you should be able to accumulate towards a further lump sum at the rate of nearly £4K a month. or nearly £50k in 6 months.

I have an expensive beauty regime !  

But what your saying is, keep money in my name, save up chunks of lump sum, and then transfer it, so its definite PET gifts and easily documented ? 

I'm not suggesting anything. I'm just trying to understand why, with your level of regular income, you are apparently unable to accumulate large cash sums within a relatively short period of time.

I just spent my last £120k in September on most recent BTL 

Maybe you should diversify a bit, you seem to sticking everything into property which makes IHT planing a lot more difficult than it is with liquid assets. You already have way more income than you need so why buy another property to get yet more income when you could have gifted that money as part of you tax planning? How much are you putting into your pension? 

Many thanks 

My pensions are already in payment. One is mostly tax free and the other a DB pension. Properties here in Greater London do increase a lot. I guess its how I made money so its familiar to me. Also I wasn't really thinking about tax planning when I bought it, but in the last few months, its kind of dawned on me lol 

Now I just want to give money to my sons (or invest money for my sons in their name etc ) - so could maybe look at investment vehicles - I might pop over to the investment forum 
cheers  

With the size of your estate paying for some professional advice might be worthwhile.

[Deleted User]

Keep_pedalling said:

Densol said:

Keep_pedalling said:

Densol said:

macman said:

Densol said:

macman said:

Starting from a reduced net income of £76K, assuming your expenditure is no more than (wild guess) £30K, then you should be able to accumulate towards a further lump sum at the rate of nearly £4K a month. or nearly £50k in 6 months.

I have an expensive beauty regime !  

But what your saying is, keep money in my name, save up chunks of lump sum, and then transfer it, so its definite PET gifts and easily documented ? 

I'm not suggesting anything. I'm just trying to understand why, with your level of regular income, you are apparently unable to accumulate large cash sums within a relatively short period of time.

I just spent my last £120k in September on most recent BTL 

Maybe you should diversify a bit, you seem to sticking everything into property which makes IHT planing a lot more difficult than it is with liquid assets. You already have way more income than you need so why buy another property to get yet more income when you could have gifted that money as part of you tax planning? How much are you putting into your pension? 

Many thanks 

My pensions are already in payment. One is mostly tax free and the other a DB pension. Properties here in Greater London do increase a lot. I guess its how I made money so its familiar to me. Also I wasn't really thinking about tax planning when I bought it, but in the last few months, its kind of dawned on me lol 

Now I just want to give money to my sons (or invest money for my sons in their name etc ) - so could maybe look at investment vehicles - I might pop over to the investment forum 
cheers  

With the size of your estate paying for some professional advice might be worthwhile.

I will do. Im a solicitor and Crown Advocate by profession ( but not this area) So Im on a fact gathering exercise etc, then I can understand exactly where to seek advice
Thanks again all for your advice  

Jeremy535897

You may be interested in more detailed information regarding gifts of normal expenditure out of income:
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14231 et seq
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14241 et seq

SDLT_Geek

You could look at a "family investment company" for your next property purchase.  I believe it is property that you know and trust!