Inheritance Tax
Inheritance tax can be a hard subject to approach. Us British don’t like talking about death and the idea of being taxed adds salt to the wound.
Proper Inheritance Tax planning might not seem like something that you want to do, but having a clear inheritance plan can save your loved one’s time, money and anxiety after your passing. We can help you value your estate and work out your tax bill, but we also work with specialised inheritance tax planners to offer you a complete inheritance tax service.
Take some of the pressure off your family during their time of grief and call us today to start planning for your inheritance.
Inheritance Tax FAQs
WHAT IS INHERITANCE TAX?
Inheritance tax is a tax on the estate (the property, money and possessions) of someone who’s died.
DO I PAY INHERITANCE TAX ON EVERYTHING I OWN?
No, Your basic threshold is £325,000. You only pay inheritance tax on any value above this threshold.
CAN MY BASIC THRESHOLD INCREASE?
Yes, if you are widowed or passing on a home, there is scope for your threshold to increase.
SHOULD I UTILISE A TRUST?
Everyone’s situation is unique; the use of certain tax planning tools might not be for everyone. We will make sure you pay the least amount of tax and more importantly, that you are happy with the plan.
SHOULD I GIVE GIFTS AWAY TO MY FAMILY?
Gifting assets and money is known as a “potentially exempt transfer”. It can be a good way to reduce the value of your estate but you have to live for more than 7 years after the gift is given for it to not count towards your estate.
CAN I GIVE MY KIDS MY HOME NOW?
If you plan on not living in the home then yes. You cannot give something and still benefit from it. This is known as a gift with reservation and will count towards the value of your estate.
WHAT IF I AM NOT BASED IN THE UK BUT I HAVE UK ASSETS?
If you die abroad because you retired to sunny Spain, UK inheritance tax is only paid on your UK assets. HMRC will only treat you as being based abroad if you lived in the UK for less than 10 years within the last 20.