Know how to Avoid Inheritance Tax on Property

Are you looking for ways as to how to avoid inheritance tax on property? Then you must know about these simple ways so that you can easily provide financial security to your loved ones even after your death. Paying the inheritance tax could lead to a huge loss of money from the property. Hence it is better that you apply these techniques beforehand on the property to help avoid inheritance tax.

 

Ways on how to avoid inheritance tax on property

 

Listed below are some ways in which you can avoid paying inheritance tax on the property.

 

Give gifts

When you are alive, give gifts. This is a good way to reduce inheritance tax on property. For example, you might transfer property to your kids but you continue to live in the property. Then the gift will not qualify for exemption from inheritance tax. If you are thinking of giving large gifts to your heirs or beneficiaries, then consult with a professional to know what benefits you can get from it.

 

A person can give £3000 worth of gifts every financial year. If the person had not used the exemption of last year, he can use that too. The total will be £6000.

 

You can also give wedding gifts of £1000 per person. This increases to £5000 for your child and £2500 for your grandchildren or great-grandchildren.

 

You can also give multiple gifts of £250 per individual. This is only applicable if you have not used any other exemption on the same individual. 

 

Leaving money for charity

 

Leaving money for charitable organizations or giving money to charity is also exempted from inheritance tax. If you leave 10 percent of your property for charity, the inheritance tax will reduce to 36 percent from 40 percent. 


Leave assets to your spouse or partner

 

If you are married or are in a civil partnership, then you can leave your assets to your spouse or civil partner. Regardless of the size of the property, they will not have t pay inheritance taxes. The married couples or the civil partners in the UK can pass the unused tax allowance to their spouses or partners. This can increase the tax allowance of the surviving partner.

 

These are some simple ways on how to avoid inheritance tax onproperty. Keeping them in your mind will help you to plan better and avoid paying inheritance taxes. 

 

As always with Inheritance tax experienced advice is essential so please call us for a free 30-minute consultation with an Inheritance tax expert. 
Book a call now: https://www.bluebond.co.uk/contact-us/  

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