Inheritance Tax Planning
Careful planning to reduce a potential Inheritance Tax bill, so more of what you have built passes to your family.
With property prices having risen over the last few years, you do not have to be wealthy to be affected by Inheritance Tax. More families are working out the value of their estates and finding a larger liability than they expected. The good news is that careful planning can legitimately reduce the tax payable, so you pass on more of your assets to your family.
Inheritance Tax is payable on the money, savings and other assets in your estate, and potentially on some gifts you make during your lifetime. The individual threshold, or nil-rate band, is currently £325,000. Anything above your available allowances that is not left to a spouse, civil partner or charity is generally taxed at 40%.
An additional residence nil-rate band, currently £175,000, can apply where your home passes to direct descendants. Where allowances pass to a surviving spouse or civil partner, a couple can have up to £1 million available between them, though the residence band is reduced for estates worth more than £2 million.
Who it’s for
- Your home and savings together may be worth more than the thresholds.
- You want to pass wealth to children or grandchildren tax-efficiently.
- You are not sure how gifts and the seven-year rule work.
- You want to protect a family business or property from a future bill.
Practical support with your inheritance tax planning.
We make sure you have a valid Will
Spouses and civil partners can transfer assets between each other free of tax, but if you die without a valid Will, Inheritance Tax could become payable that need not have been.
We use gifts and exemptions
We help you use your annual gift exemptions and make larger gifts that fall outside your estate after seven years, so you give in a way that is effective and properly recorded.
We consider trusts and reliefs
Putting some cash, investments or property into a trust can take it out of your estate for Inheritance Tax. We also advise on business and agricultural relief, working alongside your solicitor.
We plan around your own needs
Any plan starts with making sure you keep enough for your own security, then looks at your lifestyle and goals as a whole.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. The Financial Conduct Authority does not regulate some forms of estate planning, trusts or tax planning.
Questions, answered plainly.
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Let's start with a conversation.
Your first meeting is free and without obligation. We'll listen, answer your questions, and tell you honestly whether and how we can help.