“The hardest thing in the world to understand is tax" – Albert Einstein (1879 – 1955)

The IHT planning exercises that we are involved in are generally broad in nature and will naturally depend on the facts of the case.

One interesting case involved a majority shareholding in a property investment company. The shares were ripe with capital gains and were likely to lead to a significant IHT liability on the recipient (or more precisely the shareholder’s family). The shares could not be gifted down to children as hold-over relief was not available and neither could they be gifted into a discretionary trust for children/grandchildren etc as that would have led to a significant lifetime IHT charge following the FA06 changes to the manner in which trusts are now taxed.

Working with Counsel, we developed a bespoke solution that met the family’s needs and mitigated any impending IHT exposure.