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 Glossary   >   B   >   "Back to back inheritance tax plan" Definition   

        Back to back inheritance tax plan

The combination of a life assurance policy and an annuity on the same life the purpose of which is to reduce inheritance tax.The annuitant seeks to more than replace capital expended for the annuity by paying premiums on a life policy, the proceeds of which pass to his/her dependants on death and outside the estate.

Back to back inheritance tax plan
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Back to back inheritance tax plan \ The combination of a life assurance policy and an annuity on the same life the purpose of which is to reduce inheritance tax.The annuitant seeks to more than replace capital expended for the annuity by paying premiums on a life policy, the proceeds of which pass to his/her dependants on death and outside the estate.


Back to back inheritance tax plan / the combination of a life assurance policy and an annuity on the same life the purpose of which is to reduce inheritance tax.the annuitant seeks to more than replace capital expended for the annuity by paying premiums on a life policy, the proceeds of which pass to his/her dependants on death and outside the estate.