Inheritance Tax Planning

House prices tend to rise year on year meaning that more and more estates are getting caught up in the Inheritance Tax trap. The threshold this tax year is £325,000 for individuals and £650,000 for married couples and civil partners.

What is Inheritance Tax?

As a UK resident, your estate is valued as the total of everything you own, including those things which you have only a share in or simply derive benefit from (including income). Inheritance Tax then becomes payable on everything valued above the allowance by those to whom you leave your estate when you die. If you make no plans in advance, this liability will be met through sale of assets before the inheritance is passed on.

This could mean simply selling shares or closing bank accounts but, if such liquid assets are not available, could instead mean your house or even a treasured heirloom. And this all has to happen within six months, so the price obtained may fall short of the sentimental value.

Thankfully, there are ways to plan – exemptions, lifetime gifts and access to life assurance, perhaps within trusts, can all help you save the family silver. However, the tapering of liability on gifts over 7 years means you need to think well in advance.

Our Inheritance Tax Planning Service is designed to help you make a full assessment of your own situation. By comprehensively reviewing your assets, your objectives and your liabilities, we can help you minimise your liability to all taxes, not just Inheritance Tax.

Tax and legislation are liable to change in the future. Tax relief may be altered and the advice given will depend on their individual financial circumstances.

Phone us on 0800 018 1315 for further advice and information.


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