IHT planning

In this lesson

1. 0:00 Section 4: IT Planning Introduction
2. 0:05 Lifetime gifts and CGT implications
3. 1:31 Inheritance tax on lifetime transfers
4. 3:12 Death estate taxation and reliefs
5. 4:36 Residence nil rate band explained
6. 5:04 Advantages of making lifetime gifts
7. 5:32 Disadvantages and CGT considerations
8. 5:56 Lifetime gifting recommendations
9. 6:15 Death estate planning strategies
10. 7:40 Will variation and tax efficiency

About this lesson

You'll explore the key differences between potentially exempt transfers and chargeable lifetime transfers, how reliefs like business property relief and agricultural property relief work, and the strategic advantages of lifetime giving—including value freezing and taper relief. This is essential knowledge for the TX paper, where IHT planning questions test your ability to minimise tax exposure across both lifetime and death scenarios. The session covers the core mechanics of lifetime gifts: how capital gains tax applies when you dispose of assets, which exemptions are available, and how to calculate the loss to the donor. You'll learn when to use annual exemptions, the nil rate band, and reliefs such as gift relief for trusts and business asset disposal relief. The lesson also explains what happens if the donor dies within seven years, including how taper relief reduces the tax burden between years three and seven. For death estate planning, you'll discover how to fully utilise the nil rate band and residence nil rate band, the benefit of transferring unused allowances between spouses, and practical strategies like generation skipping to avoid multiple IHT charges. The lesson also covers when reliefs apply on death, how to use will variations to make gifts tax-efficient, and why certain assets—like those qualifying for business or agricultural relief—should never be left to exempt beneficiaries. By the end, you'll understand the advantages and disadvantages of lifetime giving, know which assets are worth gifting early, and be able to recommend tax-efficient strategies based on asset type, survival periods, and estate value.

Duration: 9m