INHERITANCE TAX PLANNING

Inheritance tax (IHT) may be due if the value of the deceased’s estate is above the IHT threshold (the ‘nil rate band’), but it may also be payable on trusts, and gifts made during someone’s lifetime.

The current nil rate band is £325,000 (for the 2019/20 tax year). Inheritance tax will be charged at 40% of the value of your estate above this threshold. A main residence nil rate band may be available in addition.

 

IHT has traditionally been seen as a tax only for the wealthy, but with the high value of houses more and more people are finding themselves caught in the IHT trap. It is therefore important to understand how to calculate a potential IHT liability and the different ways IHT can be mitigated.

We are experienced in structuring wealth in a way that enables you to pass on as much of it as possible while taking into account your ongoing requirements for income and access to capital. Inheritance tax is still a largely voluntary tax and it is possible to reduce or even eliminate it by using legitimate tax planning strategies. Working closely with your solicitor and other professional advisers, we can suggest ways you could reduce inheritance tax.

Important Information: The value of your investments can go down as well as up, so you could get back less than you invested. The value of your income from your investment can go down as well as up. Tax advice which contains no investment element is not regulated by the Financial Conduct Authority. Commercial mortgages, including Business Buy to Let, are not regulated by the Financial Conduct Authority.