Inheritance Tax Planning

TAKING CARE OF THOSE CLOSEST TO YOU.

Unfortunately, upon your death the beneficiaries of your estate will be subject to Inheritance Tax on any value above the Nil Rate Band (NRB). There are, however, measures you can take to minimise the amount of tax your estate may be liable to upon your death. The less tax paid, the better; more of your estate goes to your beneficiaries and not the tax man.

With the government taking 40% of everything over the Nil Rate Band (NRB) your estate could be subject to a significant tax bill upon your death. There are ways to minimize inheritance tax and make sure that your chosen beneficiaries receive the maximum amount available from your estate. Achieving this relies heavily on future planning, as altering things post death is very difficult. Speak to one of our expert advisors today to find out how we can help you minimise your inheritance tax bill.

INHERITANCE TAX PLANNING IS NOT REGULATED BY THE FCA.

Joint Estates

Did you know?

Transfers between married couples and civil partners are not subject to inheritance tax. If the first partner to die leaves their entire estate to the other there is a strong chance that none of their nil-rate band (NRB) has been used. In this instance the deceased’s NRB can be transferred to the surviving party effectively doubling their allowance to £650,000.

Gifting Assets

Did you know?

You can gift away your assets to whoever you wish in order to reduce the size of your estate and your potential IHT bill. The government allows gifts of up to £3000 per year without them being added to the value of your estate. Larger sums made up to 7 years before your death are taxed on a sliding scale known as ‘taper relief’.

Business Property Relief

Did you know?

Business Property Relief reduces the value of an estate or its assets when working out how much Inheritance Tax (IHT) has to be paid. There are various types of investment opportunities that qualify for Business Property Relief (BPR) and can be passed on free from IHT after a holding period of just 2 years provided the shares are still held at the time of death.

The Inheritance Tax (IHT) threshold

£0K

per person in the UK.

For estates exceeding the IHT threshold

tax is payable.

The government took a record

£4.0bn

in IHT from estates in 2016.

In 2016 London and the Southeast paid

£1.0bn

in IHT. The rest of the country paid £1.7bn.