Taking it Easy When You Pay Inheritance Tax

Even those schooled in the dark arts of tax avoidance recognise that it's often impossible to completely sidestep the IHT tax grab. The good news is that any IHT payments on business, agricultural, and woodland assets can be spread out over 10 years.

The thinking behind this payment plan is that to demand tax payment in one go could damage the business, farm, or woodland enterprise. What's more, these types of asset are illiquid – not easily sold – and to force a sale to pay a tax bill is unlikely to lead to achieving the best price.

Taking it Easy When You Pay Inheritance Tax

Instalments are interest-free provided they are made on time. Spreading the payments over 10 years effectively reduces the tax bill, as inflation erodes its value over time.

Add comment

Security code

Copyright © 2019 TheoryBiz.com. | "The Theory of the Business"