Tax is a concern for everyone at all stages of life. Our specialist inheritance tax planning solicitors can guide you through the complexities of your personal taxation and help you ensure you avoid unexpected tax charges in the future.
What is Inheritance Tax?
Inheritance tax is a tax which is normally payable on your death, based on the value of your estate.
Each person has a tax-free allowance, called the nil rate band, which is currently £325,000. It is also possible for people with children to claim an additional allowance against their home when it is left to their children or other descendants on their death. This is called the residence nil rate band and it is currently £175,000. If the value of your estate on death exceeds your allowances then inheritance tax is payable on everything over the threshold at the rate of 40%.
Married couples and civil partners are able to transfer their unused allowances between them. This means that a couple could have allowances of up to £1,000,000 between them before any inheritance tax is payable.
If you are widowed and remarried you might also have the benefit of your first spouse’s allowances. Through careful planning and the right structuring of your Wills it can be possible in this situation for a couple who are both widowed to claim four sets of allowances giving them up to £2,000,000 between them before any inheritance tax falls due.
Why inheritance tax planning is important?
An efficient tax plan ensures you are not paying more tax than you need to and helps you avoid unexpected and expensive tax liabilities in the future.
Planning well in advance will allow you to pass your wealth down to future generations in the most tax efficient manner. This might be by making lifetime gifts to your children or grandchildren in order to reduce the value of your estate. You may also wish to consider charitable giving as gifts to charity are always free of inheritance tax. If you leave at least 10% of your estate to charity on your death you can also benefit by paying a reduced rate of inheritance tax on the remainder of the estate.
How can we help?
Our team of experienced tax planning solicitors can guide you through the complexities of the tax rules. They will review your assets and consider your current tax position. They can then advise you on your options and various ways you may seek to mitigate your future liability, be it through lifetime giving, careful re-structuring of your Wills, or considering tax-efficient investments such as business property relief portfolios and pensions. We will tailor a plan specifically to your needs and can work closely with your financial advisors and accountants to ensure a joined up approach to your planning.
Get in touch with our Specialist Inheritance Tax Planning Solicitors
At Hepburn Delaney, we have a team of expert inheritance tax planning solicitors who can guide you through the process.
Contact the Inheritance Team to discover how we can offer you the peace of mind that your estate will be protected for future generations with an inheritance tax plan tailored specifically to you.
HOW CAN WE HELP?
FROM THE BLOG
“From the very first contact with Sumaiya, I felt confident she was the right person to help us prepare our wills. At our first meeting she explained our options clearly and professionally answering all our questions and providing all the information we needed to make a decision on the best way to proceed. Subsequent communication was clear and timely, and she helped make the whole process very easy for us. We would have no hesitation in contacting Sumaiya for any future matters or recommending her to friends or family”
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