Inheritance Tax (IHT) is payable by individuals on gifts made during their lifetime and on their estate at death. Currently, the first £325,000 of chargeable transfers during an individual’s lifetime or on death is free of IHT with any excess over this amount taxable at a rate of up to 40%.
Predictably the rules relating to the taxation of gifts and deemed gifts can be complex as can the various relief and allowances available to reduce the impact of IHT. IHT planning is vital if the value of your estate (or your joint estate if you are married or have a civil partner) is greater than £325,000. Specialist advice can enable you to significantly reduce the potential IHT charge arising on your estate thus maximising the wealth within your estate that passes to the next generation and minimising the benefit passing to the Government.
Effective, regular will planning is a must to minimise exposure to IHT so it is important that you seek advice now rather than waiting until IHT becomes more of a pressing issue. Where appropriate we can help you to reduce the value of your taxable estate in an efficient manner and plan for any future IHT charge that will arise.
If you would like to discuss Inheritance Tax or indeed any taxation matters please contact us.