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.