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To pay or not to pay? – That is the question

Tracie and Phil are in their 50’s, have three adult children and run a successful family business. As well as the value of their business, they have also accumulated additional wealth in the form of savings and property to a level over and above the Government’s tax-free allowances for Inheritance Tax. They were concerned that their three children would be left with a significant tax bill on their death.

There are a number of ways to help clients mitigate all or some of their potential Inheritance Tax, including: ensuring their Will is current, gifting assets, investing in tax efficient products, purchasing bespoke life cover and maximising pension contributions.

Tracie and Phil did not wish to gift assets as they needed these for future retirement and potential long-term care.

After an initial audit we ascertained the exact value of all assets and were able to calculate the value of the Estate and potential tax bill. We explained to them in simple language the complexity of Inheritance Tax rules, Entrepreneurs’ Relief, Potential Exempt Transfers, Residential Nil Rate Bands and they found they understood the basic concept of this most complicated planning exercise.

They asked us to propose a straightforward plan to mitigate a proportion of their liability. We recommended using specialist investment plans with some of their existing invested portfolio, maximising pension contributions using carried forward relief and, purchasing a life policy in trust for their children.

Following implementation of the plan, they still had full access to their capital and mitigated most of their tax liability immediately and the remainder after two years.

Clearly, this is an area of advice requiring substantial knowledge, often working in conjunction with a solicitor or accountant, but with careful planning clients can be assured of leaving their hard-earned wealth to their chosen beneficiaries.


Not only were they able to save a significant sum in future tax for the benefit of their children, but there was also no negative effect on their own standard of living, now, or in the future.

When her Solicitor introduced Hannah to us she had recently sold assets at a profit and therefore had Capital Gains Tax to pay. She already had significant taxable income, so was very keen on mitigating as much tax as possible.

After a full audit of her financial and tax position we were able to build an overall plan for her, incorporating immediate tax savings and long-term planning, such as funds for her Grandchildren and her own retirement. By thoughtful planning and the use of regulated tax efficient investment vehicles we were able to defer Capital Gains Tax, reclaim income tax and place proceeds of her sale in tax efficient investment schemes.

This further allowed Hannah to boost her tax efficient ISA and Pension accounts, helping her to achieve her goals of funding for her Grandchildren’s university education and her own early retirement. To achieve targets set by Hannah we used our Retirement and Cash Management Software to build an appropriate savings model built around tax efficiency and risk management.


With professional help clients like Hannah can ensure they are maximising their investment returns and achieving their objectives by thoughtful, but standard tax planning available to all of us.