INHERITANCE TAX
Inheritance tax is a tax on the assets of a deceased person's estate (sometimes called Death Duty)
There will be no Inheritance Tax to pay providing the following:
When leaving your domestic property to children/grandchildren, the threshold for not paying Inheritance Tax increases to £500K. Note that any unused threshold can be added to your spouse’s / civil partner’s IHT threshold when you pass away (this effectively provides your spouse/civil parter with £1million IHT threshold upon their death)
Exemptions and reliefs for Inheritance Tax
Taper relief only applies when the cumulative value of any gifts within 7 years prior to death exceeds the Nil-Rate Band of £325,000. It will reduce the tax payable on the proportion of gifts over the Nil-Rate Band.
Business Relief
- Business Relief provides relief from inheritance tax on the transfer of a business providing the relevant business has been held for 2 years. This is a complex relief which requires in-depth advice.
Part of our service is to ensure you don’t fall foul of heavy taxes because of poor financial planning.
More info – see our post on a method using a pension plan for your child to reduce inheritance tax here.
Note – conditions apply to the above situations, please make contact with us if you wish to clarify your individual situation. Please note also that we are not able to provide direct advice if you are not a client because we’d be operating outside the bounds of our regulatory body and our PI insurer cover.