What is Inheritance Tax ?
Inheritance Tax is simply a tax on money or possessions you leave behind when you pass on.It can also apply to some “gifts” you make during your lifetime. It is therefore vital that you receive professional Inheritance Tax Advice on your position to minimise the impact and tax paid should the worst happen, ensuring that your loved ones receive as much of your money as possible.
How Could Inheritance Tax Affect Me ?
Everyone has a “Tax-Free” allowance of £325,000. However, if your Estate is valued above £325,000, upon your death, then the excess attracts 40% Inheritance Tax. It is important to note that married couples or civil partners are allowed to utilise their previously deceased partner’s unused allowances which can provide relief of up to £650,000 on the second death. Careful planning through the use of Wills and Trusts can reduce taxation liabilities considerably and in many cases all the tax can be mitigated for.
The present limits have promised to be raised by the current Government starting in 2017 and completed in 2020. There are conditions however relating to the passing on of personal residences. Inheritance Tax is a large revenue raiser and is likely to remain so. In view of this it is essential you plan to minimise your liabilities wherever possible.
We provide a comprehensive Inheritance Tax Advice service to our clients. Please telephone or e-mail for a meeting to discuss your potential liabilities.