Inheritance Tax (IHT)
Inheritance Tax (IHT) is the tax levied by HMRC on the estate of a deceased person. For the purposes of IHT, an estate covers the deceased’s property and money, together with any of their possessions.
As a rule, you will not pay IHT if the value of your entire estate, not just the house you live in, is below the nil rate band. There are a number of other factors to consider, and potential additional reliefs may also be available such as the residential nil rate band, Business Property Relief (BPR) and Agricultural Property Relief (APR). However, even if your estate is less than the current threshold and the estate is exempt from paying IHT, it will still need to be reported to HMRC.
As IHT is complicated, it is crucial that you discuss your tax planning with an experienced tax advisor who can ensure that your legacy to your loved ones is optimised from a tax perspective.
How MFW can help with IHT advice
At MFW, we can assist you and your family with all the advice required for effective IHT planning. We will explain things in plain English and be on hand to help to reduce stress for all concerned.
We can suggest the best way to go about your IHT planning so that you maximise on all the tax opportunities available to you and your beneficiaries.
It’s never too early to plan Inheritance Tax
Although not an easy matter to consider, if you wish to maximise provision for your beneficiaries, you do need to plan your affairs in advance. The sooner you plan, the more options and opportunities you have. This will minimise the amount of money that is paid over to HMRC and reduce the burden on your loved ones.
Issues to consider
There are many issues to consider when planning to transfer your estate. In your IHT planning you will need to ensure that you strike the right balance between maximising tax savings and making adequate provision for yourself and your family during later life.
Our service is entirely tailored to your needs. We can assist in the following ways:
- Review the terms of your will.
Utilise exemptions and lower tax rates on lifetime transfers of assets including transfers between spouses. - Transfer a business (including shares in family companies) or an agricultural property.
- Transfer assets into trusts.
At MFW, we are licensed by the Institute of Chartered Accountants in England and Wales (ICAEW) to carry out the reserved legal activity of non-contentious probate in England and Wales. Our probate team includes chartered accountants and tax advisors who bring a wealth of expertise in dealing with all probate and tax matters. To find out more about our probate services, please visit out probate page here
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