Lifetime IHT Planning, Especially in Relation to Property

This talk will examine key aspects of lifetime inheritance tax (IHT) planning involving property, highlighting the effective use of exemptions, common anti-avoidance rules, and practical issues that can arise when transferring or sharing property interests. This session will study:

• Effective use of IHT exemptions, including potential traps with the normal expenditure out of income exemption
• Key anti-avoidance rules: GWR, POAT, DOTAS and PCRT
• The s.102B(3) and (4) FA 1986 exemptions – giving away a property interest while retaining a rental arrangement
• Application of DOTAS to property planning, including gifts to a co-occupier and the full consideration exemption
• Sharing property with elderly relatives – issues and potential traps to consider
• BOMAD planning considerations – gift, loan, guarantee of a mortgage, or transfer of a share of equity
• Post-Budget 2025 considerations: planning ahead of the proposed “Mansion tax” in April 2028 and the additional 2% on dividends and savings income

John Bunker, Solicitor, Chartered Tax Adviser and Lecturer