Inheritance Tax Planning

To misquote a number of historical figures, the only things in life that are certain are death and taxes. It will therefore come as no shock to you that Inheritance Tax is payable from your estate on your death. It is currently charged at the alarming rate of 40% on all assets over £325,000.


 
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However, there may be some simple steps you can take now, or which you can incorporate into your Will, to ensure that your chosen beneficiaries receive as much of the money or assets which you leave them, as possible.

We will carry out a comprehensive review of your financial circumstances with you, to ensure that you are able to reduce the amount of tax due or even better to avoid your estate having to pay any tax at all, where possible.

It may be appropriate to consider making some lifetime gifts to reduce the size of your estate on your death. The first step to take is to look at the amount you are able to gift each year without it having any impact on the potential tax payable on your death. Everyone is able to make gifts totalling £3000 per year without this being taken into account on their death.

We know that in the scheme of things this might not seem huge, but when you remember that the £3000 could be taxable at 40%, if you don’t need it during your lifetime, you may prefer your chosen recipient to receive £3000 now, rather than £1800 after your death.

We will take you through the reliefs and allowances available to your estate to ensure that your assets and investments are held in the most tax advantageous way. Where appropriate we can introduce you to some great financial advisors who’ll be able to give you even more detailed advice about those investments.

There are additional reliefs available in relation to your home, farms and woodland and business assets.