Thursday, 22 January 2015

IHT planning for business owners: business finance

As a general rule, Inheritance Tax (IHT) is payable on the net value of assets.  In other words, debts are generally deductible when calculating what a person is worth for IHT purposes on death.  However, the Finance Act 2013 introduced limitations on the deductibility of certain debts.  Judging from a few cases that have come to my attention recently, business owners still remain blissfully unaware of the impact of these changes on them.  Time for a quick reminder, then.