Independent Financial Advisers · Chartered Financial Planners · Discretionary Wealth Managers

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Independent Financial Advisers · Chartered Financial Planners · Discretionary Wealth Managers

Inheritance Tax Planning (IHT)

  • Simple and effective mitigation
  • Solutions devised in collaboration with your lawyers and other advisers

Inheritance tax will be payable on your death if your estate is worth more than the ‘nil rate band’. This is currently £325,000. If your estate is worth more than this, then 40% tax will be payable on everything above this amount.

Married couples and civil partners can pass their unused nil rate band to their remaining spouse or partner, and therefore effectively increase their nil rate band to £650,000. The July 2015 budget introduced an additional main residence nil-rate band.There are many simple and effective ways to mitigate this tax if plans are put in place. Some considerations include:

  • Is your property jointly owned or ‘tenants in common’?
  • Are you aware and utilising the various annual tax free allowances?
  • Can trusts be used to ring-fence assets?
  • Do you have adequate life cover to cover a potential liability? Is there a cheaper alternative available? Does it still meet your current needs? Is it in trust so that it does not compound the IHT liability?
  • Do you have a will?

By working with skilled solicitors and specialist providers, we can ensure the right solution is utilised depending on your requirements for access, flexibility and tax mitigation.

We consider the various allowances that everyone has available and how it is possible to gift more than the allowance available without any tax liability.

In addition, we would also consider the use of various IHT solutions including trusts, AIM portfolios, EISs*, life cover, and specialist IHT solutions to meet your requirements.

*EISs are not authorised or regulated by the Financial Conduct Authority (FCA)