Inheritance Tax Planning
In April 2017 the Government introduced changes to the tax free bands. There is still a base “tax free” limit of £325,000. It means that where an Estate is worth a net (that is, after deduction of allowable costs such as funeral expenses, gifts to charity etc) of more than £325,000 then 40% is payable to the Government as tax. The changes introduced mean that the base limit is increased where the family home is passed on to members of the immediate family.
We can therefore assist you with planning your Estate so that it is dealt with in the most tax efficient manner. Everyone is different so it is difficult to give examples but what we will do is to sit down with you, usually when you review your Will arrangements, and we will see if there is anything that can be done during your lifetime to reduce the value of your Estate at death. Remember that it may be possible to get the benefit of two tax free amounts where the person who dies is the second to die of a husband and wife or civil partnership and in certain circumstances, an application can be made for a second tax free sum so that the tax free sum is £650,000 if certain criteria are fulfilled.