We help individuals and families to reduce their future Inheritance Tax obligations, which can make an enormous difference to how much your loved ones receive after you die. Inheritance Tax doesn\u2019t apply to everyone, as HMRC says that only 1 in 20 estates in the UK have to pay it. However, for those who do have to pay Inheritance Tax, it\u2019s crucial that the bill is kept as low as possible through tailored tax planning.<\/p>\n
In this guide we\u2019re sharing a few basics that you need to know about Inheritance Tax planning. When you\u2019re ready to find out more, set up a meeting with Aaron to explore how TreyBridge can support you.<\/p>\n
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Inheritance Tax, often shortened to IHT, is tax that\u2019s paid on the estate of someone who has died. The bill is calculated by taking into account all of the deceased\u2019s property, possessions, assets and savings. If all of this comes to more than the tax-free threshold of \u00a3325,000, IHT of 40% is charged on the part of the estate above that figure. (The \u00a3325,000 threshold is fixed in place until 2026.)<\/p>\n
For example, if your estate is worth \u00a3400,000, the first \u00a3325,000 is not taxed. The remaining \u00a375,000 is taxed at 40%, which comes to \u00a330,000. That\u2019s an awful lot of money going to the taxman instead of your family members.<\/p>\n
\u00a0<\/strong><\/p>\n There are a few ways to reduce the amount of Inheritance Tax that will need to be paid after you die. Rather than limiting your income so that your estate remains below \u00a3325,000, here are a few alternatives:<\/p>\n <\/p>\n As mentioned above, leaving your home to your spouse or civil partner can result in no IHT needing to be paid. Meanwhile, leaving it to your children or grandchildren does still come with Inheritance Tax but the threshold is significantly higher. Please note that this also applies to stepchildren, adopted children and foster children but not nieces, nephews, siblings or other family members.<\/p>\n <\/p>\n If an individual dies, they can transfer their unused IHT threshold to their spouse or civil partner, potentially doubling it to \u00a3650,000.<\/p>\n <\/p>\n You didn\u2019t read that wrong \u2013 we actually saved one family over \u00a3130,000 in IHT, making an enormous change to our client\u2019s legacy. If you like the idea of saving as much as possible on Inheritance Tax, it\u2019s time to get in touch with the tax consultants here a TreyBridge Accountants.<\/p>\n <\/p>\nHow to avoid Inheritance Tax<\/strong><\/h2>\n
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Leaving your home to your kids<\/h2>\n
Passing on unused threshold to your spouse<\/strong><\/h2>\n
We\u2019ve saved a family over \u00a3130,000 in Inheritance Tax<\/strong><\/h2>\n
We can help you cut down your tax<\/h2>\n