Inheritance Tax is a
tax charged on wealth on death, certain life
time gifts and on certain transfers in and out
of trusts.Not everyone pays Inheritance
Tax. It's only due if your estate - including
any assets held in trust and gifts made within
seven years of death - is valued over the
current Inheritance Tax threshold. The tax is
payable at 40% on the amount over this
threshold.
Our areas of advice include:
A review of your current financial
planning arrangements
Creative trust planning to mitigate
inheritance tax
Planning for retirement
Sometimes, even if your estate is over the
threshold, you can pass on assets without having
to pay Inheritance Tax. Examples include:
- Spouse or civil partner exemption
Your estate usually doesn't owe Inheritance
Tax on anything you leave to a spouse or
civil partner who has their permanent home
in the UK - nor on gifts you make to them in
your lifetime - even if the amount is over
the threshold
- Charity exemption
Any gifts
you make to a 'qualifying' charity - during
your lifetime or in your will - will be
exempt from Inheritance Tax
- Potentially exempt transfers
If you survive for seven years after making
a gift to someone, the gift is generally
exempt from Inheritance Tax, no matter what
the value
- Annual exemption
You can give
up to £3,000 away each year, either as a
single gift or as several gifts adding up to
that amount - you can also use your unused
allowance from the previous year but you use
the current years allowance first.
- Small gift exemption
You can make
small gifts of up to £250 to as many individuals
as you like tax-free
- Wedding and civil partnership gifts
Gifts to someone getting married or registering
a civil partnership are exempt up to a certain
amount.
- Business, Woodland, Heritage and Farm
Relief
If the deceased owned a business,
farm, woodland or National Heritage property,
some relief from Inheritance Tax may be
available.
Speak to Auxesia Accountancy about your
specific requirements and we can advise you on
the tax implications and help you minimise the
tax liabilities. Call us now on:
Tel: 01277 725252
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