Inheritance Tax (IHT)

Inheritance tax (IHT) is a tax which is paid on the value of all you own when you die. If you do not plan properly, the Government will tell you what you owe based on a standard formula that may not be correct for you.

£5.9 billion was paid to the government for inheritance tax in the period April 2022 to January 2023.

With correct planning during your lifetime you can minimise or eliminate inheritance tax.

The Nil Rate Band allowance is a threshold above which each individual must pay 40% tax is currently £325,000 (fixed until 2028).

If you are married, you can combine your allowances, giving £650, 000 allowance between a couple.  This can be important where one person has greater assets than their spouse. Other allowances may increase that threshold further depending on your circumstances.

There is also an additional allowance called the Residence NiI Rate Band Allowance, which in certain circumstances means you can each have up to £500,000 before tax is due. So a married couple can have up to £1m of assets before IHT is due!

Many people do not consider their inheritance tax liability, so we do the thinking for you!

By taking professional advice, you will gain:

  • An understanding of your own and your beneficiaries inheritance tax liability based on each person’s individual circumstances
  • Advice on the many legal options and solutions available to you to reduce or mitigate any IHT

What if I’m not Married?

Unmarried couples cannot combine the Nil Rate Bands rates of £325,000. Therefore, both are vulnerable to inheritance tax at 40% above this level.

A correctly structured Will and Trust can solve this issue.

Is this legal?

Our advice is not tax evasion which is the illegal act of evading Tax due.

Our advice is a process which allows us to assess the correct amount of Inheritance Tax you should be paying (or not) by following the existing legislation that you may not know about. It prevents you paying more than you owe by properly planning for your estate. It is both legal and legitimate.

It is no different to understanding which state benefits someone is entitled to but may not know exist, ensuring the tax code on your PAYE is correct or claiming the correct level of expenses for a Self-Assessed Tax Return!

We always discuss your personal situation in detail and provide you with unbiased impartial advice.