Inheritance Tax Planning: The Do’s, Don’ts and Key Strategies

In this episode, James is re-joined by financial planning specialist Jon Matchett. Together Jon and James talk through key Inheritance Tax planning strategies from both a tax and financial planning perspective. This collaborative discussion opens up a broad range of action points for anyone concerned by leaving their estate with a large tax bill. 00:00 – Introduction and the importance of professional collaboration 01:51 – What is Inheritance Tax (IHT) and who does it apply to? 02:35 – The basics: Tax rates and the Nil Rate Band allowances 04:10 – Which assets are subject to Inheritance Tax? 06:03 – Understanding the Residence Nil Rate Band 07:31 – Rules for spouses and civil partners 08:55 – The vital role of having a Will 10:11 – Common challenges in dividing estates and paying the tax bill 11:32 – 2024 Budget changes: Business and farming assets 12:43 – Significant upcoming changes to pension funds (April 2027) 16:21 – Planning Step 1: Valuing your assets and debts 17:02 – Effective gifting strategies and the 7-year rule 20:07 – The "Gift with Reservation" trap 21:08 – Using life insurance policies to cover the tax bill 23:58 – How Trusts can provide control over your legacy 26:14 – Summary: Why early planning is essential #Tax #IHT #InheritanceTax #Inheritance #TaxPodcast #FinancialPlanning #Podcast #BusinessPodcast #LB1858