Inheritance Tax

If you’re a homeowner, the recent significant rise in the value of your house seems like a blessing but it could present a big problem for you in the future in the shape of a large Inheritance Tax (IHT) bill. The nil rate band is set at £312,000 and tax is charged at 40% on everything above that, so it is not only the ‘rich’ whose estates can be considerably diminished by IHT.

Since the pre budget statement in October 2007 married couples/civil partners are able to use a double nil rate band. Therefore, on second death there is an effective allowance of £624,000 provided that at first death the total Estate was passed to the surviving spouse.

However, for most people action is still necessary, when you consider Pre-owned Assets Tax and the recent alteration of Trust taxation, which threaten plans to avoid IHT. So it’s easy to see why other IHT planning methods are becoming increasingly popular. Many of our clients are taking advantage of the Discounted Gift Trust which is very effective. This Trust is structured to allow you to continue to enjoy an income from capital, still under your control but outside your estate.

Talk to us. We’ll make life less taxing.

Use our IHT calculator to assess your IHT liability.

Your Assets	£
House
Savings
Investments
Life policies
Other assets
* Business
Your Liabilities
Mortgage
Loans
Other liabilities
Results
Net assets value
Amount subject to  Inheritance tax
Estimated tax liability

* The value of your business and the extent to which this should be included in your estate requires careful consideration and an understanding of tax law. Please contact us to discuss.