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What is inheritance tax and how do people avoid paying it?

souhaib by souhaib
September 29, 2020
in Uncategorized
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What is inheritance tax, how do people avoid paying it and when is it taken from an estate? Wealth Club’s Alex Davies explains

By Rachel Rickard Straus for Thisismoney.co.uk

Published: 07:25 BST, 14 June 2018 | Updated: 09:51 BST, 17 July 2018

Rising numbers of estates are subject to inheritance tax every year and increasingly even those who don’t consider themselves wealthy find they are affected by it.

But what is it and how does it work?

On this episode of the Big Money Questions, Wealth Club founder Alex Davies explains what it is and how it works.

He explains who has to pay and when, and how it is calculated – all of the nitty-gritty.

He also talks through the ways in which people avoid paying it, from investing in small businesses, to making regular gifts, to shovelling money into a pension.

Alex also shares what the £5billion or so sum that is collected every year is used to pay for.

 

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