Nobody likes the idea of passing on Inheritance Tax (IHT) to their loved ones, so it’s worth investigating the opportunities available to ensure your bequest reaches your children, rather than the taxman.
An obvious solution is to pass on gifts while you are still alive, and a holiday home would be a prime example. If the property was worth £200,000, this could make IHT savings of anything up to £80,000. Of course, there is the seven-year rule to take into account i.e. if you pass away within seven years of making a gift/bequest, they return to your estate and, as such, become liable for IHT.