Tax Planning Services Inheritance Tax
Tax on inheritance can be complicated if there’s no planning beforehand. Leaving the new owners of an estate with hefty tax and paper work to figure out.
Inheritance Tax (IHT) planning seeks to minimise the tax payable on the estate of the deceased so that those left behind end up having more benefit from the estate left by the donor.
This can be achieved legally through various means, including spousal transfer and gifting during the donor’s lifetime’.
The more you plan ahead, the more options you have.
Tax on inheritance can be complicated if there’s no planning beforehand. Leaving the new owners of an estate with hefty tax and paper work to figure out.
Inheritance Tax (IHT) planning seeks to minimise the tax payable on the estate of the deceased so that those left behind end up having more benefit from the estate left by the donor.
Why Choose Us?
Continuous investment in our specialist advisors gives you the reassurance that your tax matters are dealt with by experts in their field. Our specialist tax team are:
- Accurate, timely and cost effective
- Highly qualified, specialist tax advisors
- Skilled at identifying tax savings opportunities
- Experienced in managing complex circumstances
- Provide ongoing support. We value long term relationships.
- Most important of all, efficient tax planning can result in significant tax savings.
Why Choose Us?
Continuous investment in our specialist advisors gives you the reassurance that your tax matters are dealt with by experts in their field. Our specialist tax team are:
- Accurate, timely and cost effective
- Highly qualified, specialist tax advisors
- Skilled at identifying tax savings opportunities
- Experienced in managing complex circumstances
- Provide ongoing support. We value long term relationships.
- Most important of all, efficient tax planning can result in significant tax savings.
Get in Touch for a Free Quote!
Inheritance Tax
Our team of tax specialists at Carrington Blake Accountancy will look at the following to better help you with your tax on inheritance:
- Your existing savings and investments
- Your current tax situation in relation to income tax, capital gains tax and inheritance tax
- Your tax allowances to ensure you are making the most of your Capital Gains Tax (CGT) allowance, personal allowance, and annual gift exemption
- Properties, including any holiday homes or investment properties
- Your income, including bonuses, interest on investments and rent
- Your other assets, including art and jewellery
- The currencies and jurisdictions in which you’re invested
- The jurisdiction where you are resident or domiciled
- Your insurance arrangements.
Inheritance Tax
Our team of tax specialists at Carrington Blake Accountancy will look at the following to better help you with your tax on inheritance:
- Your existing savings and investments
- Your current tax situation in relation to income tax, capital gains tax and inheritance tax
- Your tax allowances to ensure you are making the most of your Capital Gains Tax (CGT) allowance, personal allowance, and annual gift exemption
- Properties, including any holiday homes or investment properties
- Your income, including bonuses, interest on investments and rent
- Your other assets, including art and jewellery
- The currencies and jurisdictions in which you’re invested
- The jurisdiction where you are resident or domiciled
- Your insurance arrangements.
Inheritance Tax Threshold
The seven- year rules for gifts
N/A
You can gift any amount of assets with no IHT to pay if seven years pass without you dying. If you die within seven years, a reduced rate applies to any amount above your nil-rate band (40% within three years; 32% after three years; 25% after four years; 16% after five years and 8% after six years)
Annual Exemption
£3,000 per year
You can give away £3,000 per year (assets or cash), divided between one or more people, without IHT applying at all. You can also carry forward one preceding year of annual exemption to gift £6,000 in one year.
Small gifts
£250 per year
You’re allowed to give £250 per person per year to as many people as you like without IHT applying (as long as they haven’t benefitted from your annual exemption).
To help pay for a wedding
£1,000 to £5,000
You can contribute to someone’s wedding, as long as you gift this amount before the wedding day and it actually takes place. You can give £1,000 to anyone you know; £2,500 to a grandchild and £5,000 to a child.
To financially support a child
N/A
You can pay for the living costs of your own child under age 18, or in full time education. This includes university, but you may need to show that financial support is not excessive and only covers living costs and tuition fees.
Regular gifts from income
N/A
You can also give regular amounts away that you don’t need from your income, without IHT applying. You may have to show that this money was not needed to maintain your standard of living.
The More You Plan Ahead, The More Options You Have
There are numerous ways to reduce inheritance tax for your estate, such as gifts, family trust and charitable donations. The important thing is that the more you plan ahead, the more adaptability you have in choosing options that best produce your wishes.
Inheritance tax simplified can be very straight forward with solutions depending on one’s situation. However it can become complex depending on various factors and variables. At Carrington Blake Accountancy we’re specialised in helping you get the best course of action for tax on inheritance.
The More You Plan Ahead, The More Options You Have
There are numerous ways to reduce inheritance tax for your estate, such as gifts, family trust and charitable donations. The important thing is that the more you plan ahead, the more adaptability you have in choosing options that best produce your wishes.
Inheritance tax simplified can be very straight forward with solutions depending on one’s situation. However it can become complex depending on various factors and variables. At Carrington Blake Accountancy we’re specialised in helping you get the best course of action for tax on inheritance.
Financial Gifts
Money can be allocated in a variety of ways. They range from one-time cash gifts to gifting recurring income, as well as establishing trusts for long-term giving or when future control is vital. We can walk you through the possibilities and assist you in making the best decision. We can also assist you in making the most of your annual gifting allowances and navigating the often complicated tax requirements.
Financial Gifts
Money can be allocated in a variety of ways. They range from one-time cash gifts to gifting recurring income, as well as establishing trusts for long-term giving or when future control is vital. We can walk you through the possibilities and assist you in making the best decision. We can also assist you in making the most of your annual gifting allowances and navigating the often complicated tax requirements.
The Resident Nil Rate Band
The residence nil rate band is an exemption from paying Inheritance Tax on the family home. The allowance became effective in April 2017. The procedures can be confusing, and there are restrictions on how you can pass on your home, such as utilising certain types of trust. As a result, many people may need to revisit their Wills or seek financial guidance from a financial advisor.
The Resident Nil Rate Band
The residence nil rate band is an exemption from paying Inheritance Tax on the family home. The allowance became effective in April 2017. The procedures can be confusing, and there are restrictions on how you can pass on your home, such as utilising certain types of trust. As a result, many people may need to revisit their Wills or seek financial guidance from a financial advisor.
FAQ’s
Inheritance tax is charged on your worldwide assets so don’t forget to include foreign properties.
Trust offer highly efficient tax planning opportunities from an inheritance tax perspective but capital gains and income tax also need to be considered.
Your business and balance sheet structure will need to be carefully checked to ensure all the detailed rules are met.
Ownership as joint tenants or tenants in common (joint owners or owners in common in Scotland) can have a major impact on where your assets will pass.
The annual exemption can be carried forward for one year.