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You should consider the following questions regarding Inheritance Tax:
What will I pay?
Inheritance Tax (IHT) is a levy that is to be paid on any estate over the value of £325,000 for a single person or £650,000 for a couple these are known as the Nil Rate Bands. Upon death, if the estate including any assets held in trust and any gifts made within seven years of death is more than the previously stated threshold, then 40% of Inheritance Tax is due over the Nil Rate Band.
Is Inheritance Tax here to stay?
Until the 2013-2014 tax year the current rate of IHT has been frozen to the current levy. There are no imminent changes to this tax, however, Inheritance Tax will continue to be applied to all eligible estates at the above rates.
Is there any way of avoiding this tax?
Inheritance Tax has traditionally been seen as a tax only for the very wealthy. However, with a threshold of £325,000 for the current 2011/2012 tax year, and the price of houses still relatively high even after recent corrections, more and more people are finding themselves liable for this tax. This could lead to beneficiaries of estates paying significant tax bills, that, with a little bit of forward planning, could be mitigated.
Here at Thornton & Baines, we consider ourselves to be experts in the field of Inheritance Tax and would be happy to help you in anyway possible with any issues you may have regarding this tax, along with any other financial thoughts you might have. We have a number of advisers who are trained to the highest professional capacity and are available at any time to answer your queries and put your mind at rest. We are aware how important your finances and your future are to you which is why we are here to help in every possible way.
