Wealthy Britons Embrace Creative Tactics to Beat Inheritance Tax

Businessman Steve Perez is paying a high price to ensure his company survives once he’s no longer around.

The 68-year-old owner of a drinks and hotel chain in northern England is readying to hand over the princely sum of £100,000 ($130,000) a year for life insurance that will cover the estimated £10 million inheritance tax his heirs will need to pay on the business if he dies within the next decade.

Steve Perez outside his Peak Edge Hotel and Red Lion Restaurant in Chesterfield.

Source: Steve Perez

The payments, which he’ll finance by taking dividends from his company, will cover a tax bill that he says his firm would otherwise struggle to pay. And he’s not alone. ...