BBC and ITV star Martin Lewis says there’s a way you can legally avoid Inheritance Tax by boosting your threshold by an extra £675,000.BBC and ITV star Martin Lewis says there's a way you can legally avoid Inheritance Tax by boosting your threshold by an extra £675,000.

BBC and ITV star Martin Lewis says there’s a way you can legally avoid Inheritance Tax by boosting your threshold by an extra £675,000.

A HMRC Inheritance Tax loophole can let UK households leave £1m behind – tax-free. BBC and ITV star Martin Lewis says there’s a way you can legally avoid Inheritance Tax by boosting your threshold by an extra £675,000.

Under HMRC rules, people can only leave £325,000 to their loved ones when they die. But Osborne Law explain how married couples can increase their standard £325,000 Inheritance Tax to an eye-watering £1 MILLION.

Eslpeth Nielsen explains: “Inheritance tax of 40% currently applies to assets worth over £325,000, with each individual able to claim an additional tax-free allowance when a residential property is passed on to a direct descendant.

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“The allowance will rise by £25,000 this year to £175,000, allowing a married couple to pass on up to £1m tax-free, as long as the family home is included.”

Mr Lewis, aged 52,Lewis says there are two major benefits.

“The first is that anything you leave to your spouse is exempt from inheritance tax,” he said.

“So even if you were incredibly wealthy and leaving billions, there would be no inheritance tax when it passes to your husband, wife or civil partner.”

The second benefit is that unused allowances can be transferred to the surviving partner.

“Imagine you die and leave everything to your spouse,” Lewis explained.

“That means your allowances haven’t been used. When your partner later dies, they can combine their allowance with yours.”

“That means together they could leave up to £1 million to their children without inheritance tax.”

“There are lots of rules about gifts you can make while you’re alive, whether they’re given from income or covered by specific allowances,” he said.

“These can all help reduce the amount of inheritance tax that might eventually be due.”

“There are huge numbers of rules around gifting and allowances,” he said.

“We go through them in detail so people really understand how inheritance tax works.”