People are living longer than ever before and the need to protect accumulated wealth for your own use or to pass on to your heirs is vital. House price inflation means many homeowners fall into the Inheritance Tax net and with more and more people buying second homes both in the UK and abroad there is increased need to use specialist advice to protect estates.
Increasing house price inflation in the UK means that Inheritance Tax is no longer a tax on the rich. The threshold for Inheritance Tax is currently set at £325,000. Inheritance Tax is charged at a flat rate of 40% payable on the value of the estate that exceeds the threshold figure. It is now possible to transfer unused allowances from one spouse’s estate to another so that you may have £650,000 to set against your combined estates. We can advise you fully on this.
A wide range of tax planning measures can be taken to reduce the potential for paying Inheritance Tax. We can advise you on the best options for your particular situation. The latest changes to the rules regarding pensions are significant and are going to provide even more opportunity for Inheritance Tax planning in the future.