Insurance News Archive

Commercial property suggested as inheritance tax 'escape route'

Property owners have been advised to invest in commercial property in order to avoid losing out through inheritance tax payments.

Pension and investments specialists Clerical Medical highlighted that commercial property is exempt from inheritance tax calculations due to the business property relief scheme.

So householders who are concerned about incurring large inheritance tax bills following the death of a family member could find that investing in commercial property can act as an escape route for their funds.

"Many people will be faced with the classic inheritance tax dilemma: they have an estate worth more than the nil rate band but can't make a gift of capital as they rely on it and the income it generates," said Nick Williams of Clerical Medical.

Other solutions to being faced with a potential inheritance tax liability include taking out a life insurance policy which covers these tax bills in the event of the holder's death.

With the average home in London now worth over £300,000, as was reported earlier this week, the average homeowner in the capital will automatically have a portion of their wealth paid as tax.

26 Jul 2007