Tax Documents
Professionally drafted, regularly updated documents each with its own "how to use" introduction

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Inheritance tax (18)

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Type: Form
Agreement to sever a joint tenancy
Agreement to sever joint tenancy Owning a property as joint beneficial owners means each joint owner is taxed on an equal share of income or gains derived from the property. However, if one of them dies, their share automatically passes to the others before any will comes into effect. Severing the joint... Read more
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Type: Agreement
IHT gift from surplus income letter
There is an inheritance tax exemption for monetary gifts made out of your surplus income. To demonstrate that a gift has been made out of surplus income you should send a letter with each gift you make. Write a letterKeep this IHT Gift from Surplus Income Letter with your will to help your executors... Read more
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Type: Letter
Loan waiver deed
If you lend someone money and later write to them releasing the debt, it will still remain part of your estate for inheritance tax (IHT) purposes. To count for IHT purposes the waiver must be made by deed. Reduce your estateWhere a loan is made between individuals, e.g. parent to child, HMRC will not... Read more
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Type: Document
IHT claim for fall in value relief for land and buildings
Where, within four years of the date of the deceased's death, a property in their estate is sold at open market value for less than probate value, you can make a claim to recalculate the inheritance tax using the sale value instead. ConditionsA number of conditions must be satisfied:a claim must be... Read more
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Type: Letter
Record of gifts
One way to reduce an inheritance tax (IHT) bill is to simply give away your wealth during your lifetime. Keeping a record of the gifts you've made and IHT exemptions claimed will help the executors of your estate tackle any queries from HMRC.Keep a recordTo help your executors it's well worth keeping... Read more
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Type: Miscellaneous
Chattel lease
In order for a gift to be effective for inheritance tax (IHT) purposes, you must be excluded from benefiting, other than to a minimal extent, from the asset given away. However, you can use the asset without jeopardising your IHT position where you lease the asset from the person you gave it to. Not... Read more
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Type: Agreement
IHT spouse's domicile election
If you are married to a UK domiciled person, but you are non-UK domiciled, the intraspouse exemption for IHT is restricted. However, it's possible to make an election that removes this restriction using our new template letter.restricted spouse exemptionThe general rule for transfers from one spouse... Read more
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Type: Letter
Failed potentially exempt transfer - fall in value claim
Gifts between individuals are potentially exempt transfers (PETs) for IHT purposes. This means that there's no IHT to pay at the time, but if you die within seven years the full value of the gift becomes chargeable. This is known as a failed PET. Where IHT becomes payable as a result of a failed... Read more
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Type: Letter
IHT transferable nil rate band checklist
Transferable nil rate band checklistWhen one spouse dies before the other, any unused nil rate band can be transferred to their surviving spouse. But HMRC will require details of the inheritance tax history of the first death in order to agree any claim on the second.Transferable nil rate bandIn October... Read more
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Type: Miscellaneous
Surplus income record
There is an inheritance tax exemption for monetary gifts made out of your surplus income.The exemption relies heavily on identifying the amount of surplus income you have. A simple annual record can be used for this purpose.Gifts from incomeThere is no financial ceiling or percentage restriction which... Read more
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Type: Miscellaneous
Lottery syndicate agreement
Are you in a lottery syndicate? Did you know that any winnings (football pools, National Lottery etc.) by the syndicate leader are potentially chargeable to inheritance tax as part of their estate? So what do you need to put in place before the big win?Protect the syndicate leaderThe good news is that... Read more
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Type: Agreement
Company trading status report
Business property relief is available on shares in unquoted companies if certain conditions are met. This means 100% of the market value of those shares will escape inheritance tax. However, HMRC can take this relief away if the business consists "wholly or mainly" of non-trading activities such as holding... Read more
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Type: Document
Letter of wishes to accompany a will
Using a letter of wishes can remove uncertainty for those looking after your money and assets after you die.UncertaintyWhen you draft your will you generally express exactly how you want your estate to be divided up in terms of each individual's share. For example "I leave the residue of my estate to... Read more
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Type: Letter
Deed of assignment of life policy
As part of your estate planning you might want to transfer a life insurance policy to someone else, say a son or daughter. You can do this by assigning the benefits of the policy to them. Share your estateYou cannot give away an insurance policy as such, because the terms under which the insurance is... Read more
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Type: Document
Deed of variation
The terms of a will can be varied by agreement among the beneficiaries so that the residue of an estate passes on different terms than those included in the will. This is known as a deed of variation. These are often used to improve the inheritance tax position of the estate.The deedA gift from the estate... Read more
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Type: Miscellaneous
Company's option to buy/sell shares clause
In the event of the untimely death of one of the major shareholders, the surviving shareholders probably won't want the shares to go to the deceased's beneficiaries unless they are already involved in running the company. The shareholders can include a preemption clause in a shareholders' agreement requiring... Read more
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Type: Clause
Land and buildings tenancy in common declaration
Land and buildings tenancy-in-common declarationYou may need a tenancy-in-common declaration for a variety of reasons. Use it as evidence to satisfy HMRC that the property is now actually owned in unequal proportions.Split to your needsA Tenancy-in-common Declaration is usually used when you would like... Read more
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Type: Miscellaneous