Inheritance Tax Planning
What is inheritance tax (IHT)?
Inheritance tax is a tax on the estate of someone who has died, it includes property, money, possessions etc as well as potentially any gifts that they have made in the lead up to them passing away.
The inheritance tax rate is currently 40%, but it is only charged on the part of the deceased’s estate that exceeds £325,000. This is referred to as the nil rate band (NRB) meaning the estate will only pay inheritance tax on the part of the estate that exceeds the nil rate band of £325,000.
Residence nil rate band (RNRB)
The residence nil rate band (RNRB) is an additional amount that can be offset against the family home. For the 2023/24 tax year, the residence nil rate band is fixed at £175,000 per person. The residence nil rate band can be used together with the nil rate band to give individuals a total inheritance tax free amount of up to £500,000.
Fact: the nil rate band and residence nil rate band have been frozen until April 2028.
Estate planning is necessary & urgent
There are steps that you can take to ensure that your assets are managed as efficiently as possible to keep Inheritance tax to a minimum, but it is a complex area of tax and needs expert advice.
You never know how long you might live, how much money you might need or what else life might throw at you, your loved ones and the ones they love which is why sitting down with a professional will cover all eventualities
Our advice can cover:
- Tax planning & mitigation
- Succession planning & business exit strategies
- Residence & domicile
- Use of trusts
- Potentially Exempt Transfers
- Lifetime Transfers
- Life insurance
- IHT exempt assets
Get in touch to speak to one of our trained professionals
Read our latest blogs on IHT
Stats confirm surge in IHT receipts
Inheritance tax soaring!
Inheritance tax - what you need to know
In April 2017 the Chancellor extended the IHT allowance if a property is passed on. Every individual...
We always offer the first meeting free with no obligations to commit
