Tuesday, 16 April 2013

Ways to reduce your IHT liability

“The only two certainties in life are death and taxes” – Benjamin Franklin

Inheritance Tax (IHT) is usually payable on an Estate in the event of someone’s death. The current IHT threshold, also known as the 'Nil rate band', stands at £325,000. If your overall Estate is above this level, any excess amount will be taxed at 40% (although there are some exceptions in respect of charities etc).

Since October 2007, any late spouse’s or civil partner’s unused nil rate band can be transferred to the second spouse or civil partner when they die. This will mean that currently on second death the IHT threshold will be £650,000.

Example – Husband & Wife
Private property
Bank accounts
Investments (incl. ISAs)
Other assets (e.g. cars)
Total assets
Combined Nil rate bands
Liable to IHT
Taxed at 40%
£90,000 tax liability to pay

To find out how to reduce your potential IHT liability, please call us to book an appointment or have an informal discussion with one of our highly qualified financial planners. www.wardwilliamsfs.co.uk
Ward Williams Financial Services Ltd is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate taxation advice.

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