How to beat inheritance tax

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 20 October 2017

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

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Summary

Inheritance tax is one of the most hated around.

Despite the fact that most people will never leave enough wealth to have it charged on their estates, we really don't like the idea of 40% above a certain amount going to the taxman.

But IHT is also a tax that can be avoided. How? Listen to this week's podcast to find out, as Simon Lambert, Georgie Frost and Sarah Davidson discuss all things inheritance.

They look at how it works, ways to avoid it and the traps you could fall into.

They also have some ideas about what we should do about it.

If Chancellor Philip Hammond is listening - and we sincerely hope he does tune in – then he can get some feedback on an idea he was credited with this week: taking some money off the old, to give to the young.

What started out as rumours of a lower tax rate for the under-30s, ended up as an apparent Budget plan to cut pension tax relief for older savers and somehow boost what’s on offer to younger people.

Our story on this has been the most read of the week and the idea has faced a huge backlash. Why is that, could this work or is it just more shuffling of the deckchairs?

Also, up for discussion is the latest economy news, from inflation, to wages, a state pension increase and a November rate rise that may or may not be nailed on.

And finally, do you have a favourite motorway service station?

It turns out that some of the This is Money team are sad enough to have one – so if you’re like us you’ll be glad to know an astonishing 112 British service stations have been ranked.

What is Georgie’s top motorway service station? Listen to the end to find out. (Now, there’s an invitation.)

Enjoy.

Transcript

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0:00.0	Welcome to the This Is Money podcast in partnership with NSNI, your weekly roundup of the top personal finance, consumer and business stories that editor Simon Lambert and his team have been covering on their award-winning website.
0:12.6	I'm your host, Georgie Frost, alongside Simon Nye, is Deputy Knowledge and Product Editor Sarah Davidson.
0:18.9	And this week, we talk death and taxes. With the recent property boom
0:23.0	pulling more of us into the inheritance tax threshold, how can you make sure more of your money
0:28.1	goes to your loved ones rather than the tax man? There's much focus at the moment on the financial
0:33.7	generational divide. Speculation the Chancellor could use next month's budget
0:38.0	to rob from the elderly and give to the poor young people.
0:42.5	We look at the options and ask if this is the right way
0:45.2	for the government to address the issue.
0:47.5	Also today could interest rates rise as inflation goes up again.
0:51.1	What do you do with your old pound coins?
0:53.6	And we've got 999-111-101.
0:57.3	Is 555 the new number you need to know? As the government looks to crack down on bank fraud,
1:03.4	we head to This is Money HQ for the very latest from Lee, the Scamman, Boyce.
1:07.9	And my favourite story this year, we look at the Great British Service Station.
1:13.2	All that and plenty more coming up. Don't forget you can stay up to date with all the latest
1:16.6	breaking money news. Just go to this ismoney.com.uk or download the app.
1:23.7	This is Money. Brought to you in partnership with NS&I, giving you 100% security backed by HM Treasury.
1:34.6	But first, you work hard all your life to build up savings, a pension, a nice home, and then you die.
1:40.6	I'm sorry, but there is really nothing we can do about that one, I'm afraid, but there is something you can do to make sure your loved ones don't get lumped with a hefty
1:47.7	inheritance tax bill unnecessarily. Now, Simon, you've been looking into this. Great article,
1:53.1	by the way, from Tanya Jeffries. It is literally all in there. Anything you want to know about anything,
	...

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