I do love a good social media post. This time I am picking on inheritance tax (IHT).
One of the main tax problems that face landlords is that fact that investment properties are liable to IHT. You battle on for years trying to build value in your portfolio only to very likely lose 40% of the value when you die.
Scammers know this of course so try to exploit it. ADs on most social channels will gladly tell you that you can pay no IHT on your portfolio. I am here to tell you this is absolutely true. Give all of your property away, absolutely, more than seven years before you die and you will pay no IHT! Simple!
You were probably hoping for something a little more exciting than that though. Perhaps something that didn’t trigger a capital gains tax (CGT) liability? Or one where you could keep hold of the income (because that would be handy I suppose)? No. You can’t really do that.
There is of course a lot you can do to help chip away against IHT but you have to be really careful. Especially careful in the current climate of high profile property tax planners having their hands slapped by HMRC.
Things to consider include using trusts and family investment companies but they are definitely not for everyone. If, as is likely, the idea of paying 40% IHT isn’t high on your list of things to do I recommend starting to plan early. Reach out and I can help you sort the realistic from the fantastical!