The Financial Times and The Telegraph quote Catrin Harrison on the growing use of life assurance as a strategy to mitigate against inheritance tax liabilities
Wealthy Britons are being advised by tax experts to use life assurance as a strategy to manage inheritance tax (IHT) following recent changes to the tax regime by Chancellor Rachel Reeves, according to the Financial Times.
Life assurance policies, when placed in a trust, are not counted as part of an estate for IHT purposes, offering a way to cover IHT bills without affecting the rest of the estate.
This method is gaining traction as it allows for efficient tax payment and estate planning, particularly in light of new rules affecting pensions and assets of long-term UK residents and non-domiciled individuals.
Catrin Harrison, Senior Associate, speaks to the Financial Times and says that many of her clients who have decided not to leave the UK immediately, despite recent reforms to the non-dom regime, were using life insurance to mitigate the potential risk of an unexpected inheritance tax liability.
Many current non-doms considering remaining in the UK were weighing up the costs of the premiums for IHT cover being quoted by brokers before deciding whether to stay or go.
"The insurance brokers are inundated with new clients at the moment and are racing against the clock to get cover in place before the April tax changes.
Read the full piece in the Financial Times here. (subscription required).
