Are you tired of paying too much inheritance tax? I know a lot of us have always wanting to pay at least less tax if not none at all. With all the financial obligations, who wouldn’t want to be free at least the load of taxes? Well, there is a way to get some or all of it back.

The government offers the following tax incentives in return for investing in specific areas. Income Tax Reclaim. Income tax relief on your investment input. For higher rate taxpayers this means a return of £20,000 if you invest £100,000. This of course assumes you have paid income tax of at least £20,000. You cannot claim back more than you have paid in the tax year. Then after 3 years if you roll over your investment into a new scheme, you will again be due an income tax return of £20,000. This assumes your investment is still valued at £100,000.

Inheritance Tax Advantage. Your investment will be out of your estate for Inheritance Tax purposes in 2 years not 7 years. However, you are locked into the investment for 3 years if you wish to keep the income tax relief; and you must still own the investment at death to benefit from the Inheritance Tax exemption.

A potential Inheritance Tax saving of £40,000 for every £100,000 invested. Isn’t it worthwhile? Capital Gains Tax Can Be Deferred. If you have realized capital gains of £100,000 in a tax year, you can avoid the £18,000 Capital Gains Tax if you invest the amount of your gain in this scheme. Even better, if your liability is or has been at 40% you can, by investing in the scheme and claim back the Capital Gains Tax you have already paid. If you subsequently cash in your investment the Capital Gains Tax, liability is reduced from 40% to 18%. The 18% Capital Gains Tax liability is deferred indefinitely provided you roll-over every three years. When you think about it, this is something you are very likely to do simply to maintain the Inheritance Tax advantages.

It is also worth remembering that a deferred Capital Gains Tax liability ceases to be due when a person dies. So you can avoid completely your Capital Gains Tax liability.