Inheritance Tax only applies where the taxable value of someone’s estate exceeds £325,000. With rising house prices Inheritance Tax has become of increasing concern for many families wishing to plan for the future.
In the last budget the position with regard to Inheritance Tax was much relaxed. Now the survivor of a marriage or civil partnership can benefit from a double Inheritance Tax allowance – £650,000 in addition to the entitlement to full spouse exemption.
Jointly owned assets and trusts assets count as part of a persons estate.
There are also a number of exemptions which allow you to pass on amounts (during your lifetime or in your will) without any Inheritance Tax being due, for example:
if your estate passes to your spouse or civil partner and you are both domiciled in the UK there is no Inheritance Tax to pay even if it's above the £650,000 nil rate band
most gifts made more than seven years before your death are exempt
certain other gifts, such as wedding gifts and gifts in anticipation of a civil partnership or marriage up to £5,000 (depending on the relationship between the giver and the recipient), gifts to charity, and an annual exemption of £3,000 may also be given away tax free
For more information, or to make an initial appointment contact David Hardy.