Planning to minimise the liability to Inheritance Tax is a team effort involving you and your professional adviser. Thompson Jenner Financial Services will help you select the most appropriate method to achieve your long-term objectives of retaining your wealth for the benefit of your chosen beneficiaries, as well as ensuring you don’t make unnecessary gifts to the taxman.
IHT is currently payable where a person’s wealth is more than £325,000 (2017-18). Thus, if you own your house and have some savings, life assurance policies, or business assets, your estate could be liable.
From 6th April 2017, a nil rate band of £100,000 will be available when a main residence is passed onto a direct descendant after a death. If the net value of the estate exceeds £2 million, this additional nil rate band will be reduced by £1 for each £2 over the threshold.
A surviving spouse or civil partner may claim the unused proportion of an earlier deceased spouse’s nil rate band and additional nil rate band for an additional claim, up to the current nil rate band/additional nil rate band threshold.
When you die, IHT will be charged on your personal wealth, together with all of your lifetime gifts or a proportion of them made in the preceding seven years.
The full rate of tax is 40%, but this is reduced on a sliding scale for gifts made between three and seven years before your death.
You must think about the following:
The above has emphasised the need for ongoing advice to ensure that your plans are relevant to your current situation and still in line with the existing legislation. We can help you and your family determine the best course of action to resolve any potential liability you may have, and ensure that as much of your estate passes on to your beneficiaries and as little as possible goes to Her Majesty’s Revenue and Customs in the form of tax.
Appointments for our Devon financial services can be held in our offices at Exeter or Exmouth during office hours. However, if it is more convenient, we can arrange for the appointment to be at your home address or business premises.
Thompson Jenner Financial Services Ltd is authorised and regulated by the Financial Conduct Authority.
To discuss your requirements, or to arrange a free initial meeting, please call Neil Sear or Philip Dalley on 01392 258553 or 01395 279521. Alternatively, click the contact button below to see all the methods to get in touch with us and if you like you can leave an email enquiry with the form provided and we will contact you to arrange a time and date.Contact Us