What is Inheritance Tax Planning?
Inheritance Tax is now not just a concern of the wealthy, with the IHT threshold currently at £300,000.00 and the average house in the UK valued at around £211,000.00 this is rapidly becoming an issue for the majority. Tax is charged at 40% of the value of your estate over the £300,000 threshold when you die. Your estate includes everything owned in your own name or a share of anything owned jointly minus any outstanding debts such as mortgage, unpaid bills etc as well as funeral expenses. Inheritance tax is proving to be a big money spinner for the revenue if you would like to avoid this final tax on your wealth then organising your finances now may save your dependants some of your wealth.
At its simplest, inheritance tax is the tax payable on your estate when you die if the value of your estate exceeds a certain amount. For example currently in the UK, inheritance tax is charged at 40% on the value of estates above the threshold (nil-rate band) of £285,000, subject to any exemptions and reliefs that may be available. Your estate is basically the net value of everything you own, all your assets minus any debts. Why do you need to plan? Doing nothing is not an option. Without proper tax planning, many people can end up leaving a substantial tax liability on their death, considerably reducing the value of the estate passing to chosen beneficiaries. At Churchill & Partners we can help you structure your estate in the most tax efficient manner greatly reducing tax liabilities you could currently be leaving behind. Contact Us.
