Inheritance Tax Planning

Estate Planning

“NOTHING IN LIFE IS CERTAIN EXCEPT DEATH AND TAXES”  Benjamin Franklin

Not many people think about inheritance tax (IHT) or are even aware it exists. After all, it’s not something that normally affects us whilst we’re alive. Those that are aware of it probably think it is only the wealthy or elderly that needs to worry about it. No one wants to pay tax unnecessarily to the Chancellor but it's surprising how many people end up doing it.

The current starting point, called the nil rate band, is £325,000 (2011-2012) tax year). This means that upon death everything you own over and above this amount is subject to 40% taxation, regardless of whether you’re in the lower or higher tax bracket. That’s potentially £400 out of every £1,000 that you leave behind for your loved ones, over and above the nil rate band, that could go straight to the taxman. There is an exception to this where assets are left to a spouse or civil partnership partner. When this happens all assets are exempt from IHT at present.

We all work hard to build up capital and we want to make sure that our loved ones get as much possible – not the taxman.

It is possible with good planning to reduce or eliminate the inheritance tax due on death.

If you would like to know more about this simply call us on 020-8567-2221 for more information or to arrange a convenient time to meet our senior partner, Robert Taylor. Alternatively click here for our contact details.

HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen

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