Why should I consider the effects of IHT?
After paying tax all of your life do you want your beneficiaries to have to pay more on your death?
Can you remember how much your house used to be worth compared to it’s value now?
The Current Inheritance Tax Threshold is £312,000 for the tax year 2008-2009.
This means that each person can have an estate valued at under £312,000 without having to pay any IHT. (note that legislation may now allow for any unused relief from a deceased spouse to also be considered).
Remember, however, that this includes the value of your whole estate including your property, possessions and any savings, life cover and investments that you may hold.
Anything over this is taxed at an ‘IMPRESSIVE 40%’ however with the right planning, this could be drastically reduced or even removed altogether!
In our experience, we have had numerous cases where even multi-million pound estates have been able to mitigate their liabilities by using bespoke Inheritance tax planning. | What can I do about it?
There are a number of reliefs and exemptions available which can be utilised:
Exempted gifts:
-Any gift to a spouse or civil partner.
-Gifts not exceeding £3,000 in any tax year.
-Gifts on consideration of marriage - £5,000 made by person’s parent.
- £2,500 made by person’s grandparent.
- £1,000 made by anyone else.
-Gifts to UK charities
-Gifts for national purposes
-Small gifts up to £250 in each tax year
-Gifts out of Income which are ‘normal expenditure’
Other options:
Although these gifts are useful, a number of solutions can be found by using the correct Will and Trust Planning.
This is a specialist area which is different depending on your individual circumstances. For a FREE STRICTLY CONFIDENTIAL initial discussion contact us on: (01475) 530967
or complete the enquiry form below:
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