Inheritance Tax (IHT) can often be a complex subject and affects many individuals.
IHT is liable on assets in excess of your Nil Rate Band, which is £325,000 per person and up to £650,000 per married couple.
IHT is applied at a rate of 40%, which can potentially leave your family with a large bill to pay and in certain circumstances, mean that assets must be sold to pay the tax.
However, as with other areas of tax, it may be possible to reduce the amount you pay.
We can help by firstly assessing your position and estimating the potential tax liability that your estate could suffer. We will then consider your options and put forward a recommendation to help reduce the tax and increase the value of your estate available for your beneficiaries.
As with any form of succession planning, starting early allows more scope to use the reliefs available, which can provide greater protection of your assets.
We can provide advice on a range of needs:
- Reducing your inheritance (IHT) tax bill
- Protecting your assets
- Passing assets on to your family
Basic IHT Reliefs
One way to reduce the exposure to IHT is to reduce the assets in the estate during lifetime by making lifetime gifts. A lifetime gift will be either a potentially exempt transfer, a chargeable lifetime transfer or an exempt transfer.
This article covers some of the basic exempt transfers that you can make and a few details on potentially exempt transfers.