IHT planning is the answer to rising house prices in the UK that leave first time buyers struggling...
The UK has experienced a huge increase in house prices since the 1950s, and the so called 'Baby boomer' generation are the ones who have benefitted the most from this. On the other hand the young ones just starting out are really struggling to get on the property ladder, especially in the big cities where their salaries can be up to 10 times less than the average house price. This leads however to an opportunity for the older generation. Through good inheritance tax planning they can ensure that the capital that they have amassed over their lifetime goes to help the generation that they leave behind, their beloved children and grandchildren, and not into the coffers of the government.
40% IHT on money that has already been taxed through income tax, capital gains tax or SDLT, is a lot. So come on baby boomers... you have a 7 year period where you can give away up to £325,000 and not suffer any IHT at all. Use it!