Inheritance Tax Planning
Over the past 10 years, HM Revenue & Customs have doubled the money it receives from Inheritance Tax*. Changes in the economy such as increased house prices have put more and more people over the current Inheritance Tax threshold (£300,000 from 6 April 2007)**. This often results in a hefty 40% tax bill on anything over the threshold.
If you think your estate exceeds the Inheritance Tax threshold - or could do so in the future - there is plenty you can do now to plan for it in advance. For example, making a will with Inheritance Tax planning in mind is a good start. You could also make gifts during your lifetime in order to minimise any Inheritance Tax liability and try to make full use of any Inheritance Tax exemptions. There are also ways in which life assurance and investments can be used for Inheritance Tax planning.
We will be able offer advice and guidance in this complex area of tax planning with a range of bespoke solutions.
* Source: HM Revenue & Customs, from tax years 1995/96 to 2005/06
** Source: HM Revenue & Customs, Estates notified for probate 1995/96-2002/03