IHT Planning

Most people want to pass their estate to their family, not the government, when they die – in which case inheritance tax planning (IHT) is vital.

Why changes to IHT weren’t enough

The IHT nil-rate band will be indexed by reference to the CPI instead of the RPI from 6th April 2015.  Until then it is frozen at £325,000.

Therefore, the first £325,000 of an individual’s estate is free of inheritance tax.  People who are married or in a civil partnership can transfer any unused allowance to their surviving partner making it possible to increase their IHT threshold up to a maximum of £650k. Beyond that, your estate has to pay 40%.

However, the price of the average detached house is already more than £650,000 in some parts of the country – which means many people will still find their estate is liable for IHT, especially if they have other assets.

We can help to reduce your estate’s IHT bill

There are legal ways to reduce the amount of tax on your estate. We can help you to make the correct provisions using our experience and knowledge of the complex IHT rules, you can leave more for your family by making use of:

• Tax-efficient Wills
• Gifts during your lifetime
• Trusts
• Life Assurance
• Taper Relief