Inheritance Tax is a tax on the estate of someone who’s died. At current rates, an estate could be liable to pay inheritance tax at 40% on all its worldwide assets, except for the first £325,000 (£650,000 if you are married or in a civil partnership) with an extra £100,000 or £200,000 ‘residence’ nil rate band in certain circumstances.
As with so many areas of taxation, inheritance tax is complex and confusing. It can also be costly, especially if you’re not aware of the numerous reliefs and exemptions that could save you significant amounts of money.
The amount of inheritance tax you’ll be expected to pay depends on a number of factors, including where HMRC deems to be your home, your marital status and history, the composition of your estate – whether property, cash, shares etc.
The good news is that by structuring your estate tax efficiently, the amount that has to be paid can be minimised. For example, our experts are on hand to discuss measures such as trusts for children, transfers of property and spouse exemptions.
These are just some of the ways you can make sure more of your wealth goes where you want it to, while potentially minimising the burden on your beneficiaries.
To find out more about the services we offer, give us a call or book an initial 15-minute consultation.