Tax and Trusts Planning

Inheritance Tax planning

Historically Inheritance Tax was something that only the very wealthy had to worry about. Due to rising property values and the tax threshold remaining static for some years it is now a tax that affects more and more people.  Increasing house price inflation in the UK means that Inheritance Tax is no longer “a tax on the rich”.

The threshold for Inheritance Tax (known as the nil rate band) is currently set at £325,000 for the tax year 2018/2019 fixed until 2020/2021.  Inheritance Tax is a flat rate tax at 40%, payable on the value of the estate that exceeds the threshold figure.  If the value of an estate is more than £325,000 then Inheritance Tax is chargeable at a rate of 40%. For example, if your estate is worth £500,000 then HM Revenue & Customs will receive £70,000 in Inheritance Tax.

A wide range of tax planning measures can be taken to reduce the potential for paying Inheritance Tax. Our experts can advise you on the best options for your particular situation.

In terms of lifetime tax planning, we can advise on Inheritance Tax exemptions, including:

  • Annual exemption;
  • Gifts on marriage;
  • Regular gifts from surplus income;
  • Pensions;
  • Planning by using financial products, including;
  • Gift and Loan Trusts;
  • Discounted Gift Trusts; and
  • Business Property investments

For tax planning on death, we can advise how to make the most of your exemptions, including:

  • Agricultural Property Relief;
  • Business Property Relief.

For further details please contact:

Jenny Walker or David Watson

Tel: 01489 892101

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