Tax book offer is an ‘invitation’ to the sales team
QI OWN my home and have savings. And I know all must one day die. Putting the two together means inheritance tax. So when I saw an advert offering ‘an eight-step solution’ to the tax with a free book, I was tempted. I didn’t apply because those offering the book demanded personal details including phone numbers. I have sent the link. What do you think? Josephine S
AINHERITANCE tax can take 40% of all you leave over £325,000 – including property, savings, investments (taxed or tax-free), furniture, clothes and cars
A number of schemes claim to reduce or abolish this tax liability. Some demand large sums up-front for illegal plans, others, equally pricey, produce ideas which may be legal now but could be ruled illegal in the future. You probably won’t get a refund or compensation.
You can give away property and other items, and providing you live for seven years after the gift, that becomes inheritance tax free. But you can’t give your home to your children and continue to live in it unless you pay rent (which will be taxed – and they could be hit for capital gains tax when they sell).
The link you sent is worrying because it takes thousands of words to say very little – a feature of some unpleasant online schemes. But the small print shows the intention. There are inheritance tax let-outs for certain unquoted shares – the idea is to allow small businesses to be passed on.
Asking for the booklet gives them permission to phone you with offers of high-risk shares. The small print also reveals they may already own these shares, so their advice would be biased.
You can reduce tax bills with charitable donations in your will, giving wedding presents to close family, and making certain regular payments to dependants. You can also give amounts up to £250 and you have a £3,000 a year tax-free give away as well – figures not updated for nearly 35 years. And anything you leave to a partner (marriage or civil partnership) is tax-free until they die.
Inheritance tax is complex. You need a valid will. And it’s best to seek real independent advice.