Inheritance Tax Planning (IHT)

Inheritance Tax Planning (IHT)

  • IHT begins at £325,000
    Example:
    • £600,000 – Property
    • £200,000 – Other Assets
    • £190,000 – Tax Payable
  • IHT is payable at 40%
  • Taxable assets include:
    • house
    • car
    • bank accounts
    • shares
    • pensions
    • jewellery
    • other items of value

For many people the idea of the Government taking tax from their hard earned savings and assets is unacceptable! Inheritance Tax is payable at 40% of the value of your estate over the tax threshold of £325,000 for the 2011/2012 tax year.

Assets to be taken into account when working out the value of the estate include not just the house, but car(s), bank accounts, shares, pensions, jewellery, collectibles and any other items of value.

Tax reduction methods

There are ways in which Inheritance Tax liability can be reduced. These require a degree of forward inheritance tax planning and we believe are best considered long before the onset of old age and whilst you enjoy good health. I recommend you look at this issue if you have assets over the nil rate band.

Let me advise you on your Inheritance tax mitigation plans.

The Financial Services Authority does not regulate Taxation and Trust Advice.

Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.