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The first thing to say about Inheritance Tax is that many people do not have to worry about it.
If the value of your estate falls below the tax threshold, currently £312,000, no Inheritance Tax is payable. However, the second thing to say is that more people are paying this tax than ever before – due to inheritances of their own, greater share ownership and the rapidly rising property values of recent years. If your estate does exceed the threshold, you will have to pay 40 per cent of the balance to the State.
Unless you get some expert financial advice. There are a number of perfectly legal ways to reduce or even eliminate any liability you may have to Inheritance Tax. Our team is skilled in this area, and we can help with:
- Effective wills
- Trust planning
- Gifts
- Exemptions
- Equalisation on estates
Here's an example:
For this example the client has a chargeable estate of £2million after the Nil Rate Band has been taken into account. If the client was to use this route the savings would be as follows:
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No Planning
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With Planning
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Saving |
Chargeable Estate
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£2,000,000 |
£2000,000
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IHT @ 40%
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(£600,000) |
- |
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| Fee |
- |
(£200,000) |
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| Total |
£1,200,000 |
£1,800,000 |
£600,000 |
This can be a complex area, but we have already helped many people pass more of their estates to their children - and less to the taxman. For a free of charge assessment of your Inheritance Tax position please contact us
To use our Inheritance Tax Calculator click here
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