Inheritance Tax Advice
Death duties have been with us for centuries, and have been known successively as Estate Duty, Capital Transfer Tax, and now Inheritance Tax. Irrespective of the name, the object of the exercise has always been the same; to raise revenue from the estates of citizens.
Inheritance Tax no longer affects only the wealthy. It will undoubtedly come as a shock to many to discover that a large proportion of their wealth - either in the form of the family home, investments or even old family heirlooms - might actually have to be sold in order to meet the tax bill on death. Conversely, it will probably come as no surprise at all to learn that Her Majesty’s Revenue and Customs is always first in line and, unless a specific provision has been made, it is not usually possible to sell assets until probate has been granted.
So few people do anything about their potential Inheritance Tax liability that HM Revenue and Customs collected £3.9 billion in 2007/2008.
Here are three practical courses of action to minimise Inheritance Tax:
- Ensure your Will is written and planned correctly to save the maximum amount of tax.
- Transfer assets through the prudent use of lifetime gifts
- Create a tax-efficient fund to enable the beneficiaries of an estate to meet the tax liability without disturbing the family wealth
No one method can, or should, be considered a `complete solution` as each person will have differing circumstances and requirements and the taxation environment can change from time to time.
- Who is liable for inheritance tax (IHT)?
- What is a transfer of value of inheritance tax?
- Who pays the tax and when?
- What IHT tax Relief's are available?
- Can Pensions play a role?
- Exempt transfers explained
- Gifts and trusts how to
- Issues not to overlook when making lifetime gifts
All the above and much more covered in our Introduction to inheritance tax planning.
For more information and advice about our inheritance tax planning in the UK and inheritance tax advice, please contact us:
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