Inheritance Tax Solutions

A Purchase Life Annuity works by investing your capital into an annuity. On day one this capital is outside your estate for Inheritance Tax purposes, as, for capital value purposes it has no value other than a regular income stream.

The income stream would fund a life insurance policy for the amount you have placed into the purchased life annuity. On death the value, which is in trust will be paid to the beneficiaries free of UK Inheritance tax. The income stream is very tax efficient as a large proportion is considered as return of capital and is tax free unlike a conventional annuity.

Disadvantages:

• On death your beneficiaries will only receive the capital value of the insurance policy. The trusts mentioned before would give you a potential for growth on the money invested in the long term 

• You have lost complete control of the capital

Advantages:

• Day-one Inheritance Tax saving for all the capital placed into the purchase life annuity 

• Tax efficient income 

• Guaranteed income and guaranteed capital to beneficiaries 


Call one of our Inheritance Tax Planning advisers on 0800 0112825 or complete the general
enquiry form in confidence to see how we can assist you.

• Life Insurance To Pay the Inheritance Tax
• Inheritance Tax Trusts
• Nil Rate Band Discretionary Will Trust
• Business Property Relief
• Agricultural Relief
• Realigning of Assets
• Other Inheritance Tax Exempt Gifts