Inheritance Tax

Inheritance Tax



Inheritance Tax is often known as the ‘voluntary tax’ as there are a number of ways to mitigate it.

Despite this claim, the reality is not so simple, after all, who gives all their money away these days?

Assets over £325,000 are liable to 40% tax when you die. So an estate worth £1,325,000 is liable to IHT of £400,000.

It doesn’t seem fair does it?

There is a way to reduce your liability, but you need a plan and a project manager to bring this to life.

I’ve chosen to work with local tax and legal specialists.

As a Chartered Financial Planner, I have developed a tried and tested way of working with clients, and effectively ‘project manage’ a plan to help bring together the best outcomes for my clients, collaborating with solicitors, accountants and tax consultants.

There are a number of ways in which individuals can reduce their IHT liability, from making outright gifts, placing assets into trust to investing into shares that qualify for IHT relief, it can all be very complicated.

Over the years I’ve helped many clients realise their aspirations of passing more down the line to the next generation, quite often using a combination of strategies.

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Already Invested?

If you are reading this, you may already be invested into a pension, investment, ISA or trustee investment.

You may also be happy that you ‘have not lost money, and the fund has grown’. While Cash ISA’s are tax free from an Income tax and CGT perspective, they are not free from Inheritance Tax. Some (not all) Pensions are free from Inheritance Tax, and some (not all) trusts are free from Inheritance Tax too.

It may be the case you have a large sum of savings held for safety in the Bank or Building Society, if you are single, and have assets (including property) that exceeds £325,000 then any savings you hold in excess of this are potentially subject to 40% Inheritance Tax, for married couples this £325,000 figure is doubled, and if you have any children, then there is an additional allowance of £175,000 each called the ‘Residential Nil Rate Band’, terms and conditions apply of course.

Its important to understand the impact of Inheritance Tax on your entire portfolio, and not just focus solely on investment performance.   Are your investment or pension funds performing well, should I get a second opinion?

As you can see there are a number of aspects to Inheritance Tax planning, and investing is not limited to just investing the money, its about having a trusted adviser to keep you informed and updated.

If you click on the VouchedFor icon below, you can read some testimonials from clients I’ve helped over the years in respect of Inheritance Tax planning.

Please note that the FCA do not regulate will writing, tax planning and trusts. 

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