Death presents new tax advantage
Married couples wishing to minimise the amount of tax that must be paid on their estates should act now before the loophole is closed.
Link: Revenue to benefit from inheritance tax scheme
This is the advice from mid-tier firm Clement Keys after the Revenue lost a test case allowing couples to invest spare capital in tax neutral products such as insurance-based gifts and loan schemes.
The firm is urging clients who wish to invest their assets outside their estates, and avoid the 40% death duty, to do so now before new legislation is introduced in the Spring Budget.
‘For many people paying death duty tax that starts at 40% after your initial exemption is a key issue, but one which must be weighed against the need to maintain income at a certain level as this is also of prime importance,’ said Phil Cook, partner and head of the specialist tax division at Clement Keys.
‘Many people find themselves in a position where they would like to reduce the potential death duties payable on their estates but cannot afford to make substantial gifts as this would involve them forfeiting too much capital or prove too big a drain on their income.’