Inheritance tax can be a major issue. Without careful planning you, or your beneficiaries, could eventually be exposed to a significant tax liability.
If your estate is worth more than a certain threshold, currently £325,000, i.e. £650,000 for married couples or civil partners, when you die, it is taxed at a cost of 40% on anything above that amount. This threshold or nil rate band is the tax free amount the government allows you to pass on before your beneficiaries have to pay tax. The allowance is set to increase over the next few years, but due to the sustained rise in house prices many more people’s estates will be large enough to be liable.
You may feel that after all the tax you have paid in your lifetime, on income and capital gains, the Inland Revenue should not have the final say with Inheritance tax. With proper consideration, however, you can reduce your IHT bill by reallocating some of your assets. In fact, if your planning is done in good time and within the allowances, you could give enough away during your lifetime to leave no more than an amount equal to the nil rate band.
Our in-house specialists will assess your situation and make recommendations as to the best way to reduce your IHT liability so that you experience the tangible benefits of our approach.
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