Timothy Clayton Hutchings penalty for trying to evade Inheritance Tax.
If you make any gifts of money or items of value over £3000 to another person( excluding your spouse or civil partner) these gifts are actually regarded chargeable transfers for inheritance tax purposes. At the point when the gift is made there is no charge as the gift will be considered a potentially exempt transfer (PET). A PET only becomes chargeable if you subsequently die within seven years of making the gift.
Investing in a business to avoid Inheritance Tax
Inheritance tax (IHT) is often called a voluntary tax. The possibility of avoiding or reducing IHT by just giving away assets and surviving seven years seems pretty attractive on the surface but can have implications if income is required or if the beneficiaries divorce.