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Mitigating Inheritance Tax

As we write, nearly everybody born in the UK and quite a few who were not is subject to Inheritance Tax (IHT) on the value of their estate when they die.

However, not everybody’s estate will pay inheritance tax. There are many reasons why tax might not be payable and here we will deal with some of them:

Mitigating Inheritance Tax

Personal IHT Allowances

Each of us is currently allowed to pass up to £325,000 to our loved ones at a tax rate of 0%. This is known as the Nil Rate Band or NRB.

If a deceased individual had owned their main residence at any time since July 2015, they would qualify for an additional 0% allowance which their executors could claim of up to £175,000. (Individuals who died prior to July 2015 could still qualify if they left a surviving spouse or civil partner who subsequently died after this date)

Qualifying Investments

Certain Investments including recognised pension plans, life assurance policies written to Trust, and some business assets can pass without incurring IHT.

Of course, times change and so can the above allowances.

It is important to quantify and understand your own position and that of your wider family in order to mitigate any IHT that might be imposed especially as the current rate of tax on values outside the allowances and qualifications is 40%

How Can We Help?

By helping you assess the value of your own assets and those which might affect your family, we can start to help you plan.

Given correct information, access to your financial advisers and time, we can provide an optimum solution to either fully or partially mitigate your family’s IHT situation.

All situations differ and so it would be best if you made contact with us for a further confidential discussion. Just call on the number below or click the Get In Touch button to send us a message.

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