- 1. The Scope of the Book: Estate Planning Introduced
- 1.2.3 Other Taxes
- 1.5.14 Tackling tax avoidance: the 22 June 2010 Emergency Budget Proposals
- 1.6.1 ‘Spotlights’ and ‘Signposts’
- 2. Inheritance Tax Mitigation: The Basics
- 3. Making Gifts: Outright or Protected?
- 3.2.3 The pre-owned assets regime
- 3.2.4 Settlor-interested trusts: Income Tax and CGT
- 3.6.3 Formation
- 4. Trusts: Tax-Efficient Management
- 4.4.3 Capital Gains Tax
- 4.7.6 Related settlements
- 4.9.3 Power to accumulate or a discretion over income
- 5. The Family Home(s)
- 6. The Family Business
- 6.1.3 Capital Gains Tax angles
- 6.1.4 Other taxes
- 6.2.7 The period of ownership
- 6.3.1 The announcement of 24 January 2007 - and increasing thresholds
- 6.3.2 The detail of the legislation
- 6.6.2 Partnerships
- 9. Investments
- 10. Life Assurance
- 11. Pensions
- 11.1.2 Pensions not to be used for IHT mitigation
- 11.5.1 Overview
- 11.5.5 Death benefits
- 11.5.6 Age 75: ASP or annuity purchase?
- 12. Charitable Giving
- 12.2 Charities: The ‘fit and proper persons’ test in FA 2010
- 12.2.3 Tax advantages for donors summarised
- 12.2.3.1 Gift aid carry back: time limit for claim
- 13. The Family Unit
- 15. Leaving the UK
- 15.3.7 Gifts from UK to non-UK domiciliaries and reservation of benefit
- 15.3.8 Domicile: prospective government review
- 15.5.7 Differing status for different members of the family
- 16. Non-UK Domiciliaries Living in the UK
- 16.1.5 Further review of non-doms promised on 22 June 2010
- 16.3.2 Compliance
- 16.4.4 IHT and double taxation: the pre-capital transfer tax treaties and Switzerland
- 16.6.1 The statutory rule
- 16.6.2.1 Excluded property settlements and the UK private residence
- 17. Offshore Trusts and Companies
- 17.5.2 The capital payments charge in more detail
- 17.7.4 The transfer of assets abroad regime: non-UK resident childrens trusts
- 18. Wills
- 18.4.3 The transferable nil-rate band
- 18.5.5 Different structures: the balance of advantage
- 18.6.1 The issues, subject to the transferable nil-rate band
- 18.6.2 Statement of Practice SP 10/79
- 19. Post-death Planning
- 20. Compliance
2 - Inheritance Tax Mitigation: The Basics
Chapter: 2 - Inheritance Tax Mitigation: The Basics
What is it?
2.10.1
Long gone are the days where the family unit might be generally understood as meaning husband, wife and 2.4 children. And in very many cases, the needs of what might be called ‘the extended family’ must be taken into account. However, for purposes of this Book I am concerned primarily with just two (or possibly three) generations and a fairly close-knit set of relationships. The older generation might be a married couple, a civil partnership, a couple living together or a single parent. The younger generation (if any) might be one or more children or step-children of any of the above, whether minors or aged 18 or over. The basic fiscal framework requires one to consider: (a) whether or not an IHT exemption, and indeed a CGT relief, applies on transfers of assets between members of the older generation; and (b) whether an anti-avoidance regime applies for income and CGT purposes for income and gains accruing to individual minor children or trustees for them.