Death & Taxes: Inheritance Tax Payment Advice
Did you know that Inheritance Tax can cost families hundreds of thousands of pounds? However, with careful financial planning, this can be reduced significantly or avoided altogether.
What is Inheritance Tax?
When someone passes away, the value of their estate is calculated, which includes all savings, investments and property. Inheritances which are between married couples are not liable to Inheritance Tax (IHT), however, when you are leaving commodities to an unmarried partner, children or anyone else, your estate will be accountable for Inheritance Tax, if the value is more than your Nil Rate Band.
The Nil Rate band currently stands at £325,000, with 40% tax payable on the value of the estate above that level.
IHT will diminish your Estate by up to 40% – leaving your loved ones with a lot less than you may have wanted for them. So, if you are an individual with net assets valued at more than £325,000 or a couple with net assets valued at more than £650,000, come and talk to us. With years of increased house prices, many individuals have been occupied by the IHT threshold, increasing it higher up the schedule. Recent reports published by the BBC states, the people of Brighton ranked third in the UK in terms of paying Inheritance Tax, with 585 families paying out an average of £157,436.
Count on Cardens to help
Cardens tax experts can help you understand your exposure to IHT, and then work with you to reduce that and help ensure that your financial legacy passes, and remains with, those you intended to receive it. We adopt a common sense approach to ensure that you don’t ‘give away too much too soon.’
To book a free, no obligation appointment, call us today on 01273 739592 or email firstname.lastname@example.org. For more information, head to our Private Client Inheritance Tax service page.