Interesting Q&A with David Holmes of Thorntons Investments in Insider looking at what routes are available to mitigate the exposure your business could have to Inheritance Tax as well as looking at the application of Business Relief with investment in companies listed on the AIM market.
With forward planning there are several measures available to help reduce or mitigate liability to IHT. These include gifting assets, settling assets into trust, and the use of life assurance to cover a fixed amount. Traditional ways to mitigate inheritance tax can be inflexible and may mean giving up control and access to capital. Where certain assets are gifted, the donor may have to survive for seven years before their value fully falls outside the estate. Business Relief is one of the lesser-known solutions but its use is on the rise, particularly with investment in companies listed on the Alternative Investment Market (AIM).