Inheritance Tax
We specialise in Inheritance Tax strategies and have been recognised for our work through various awards, such as Money Management Inheritance Tax Planner of the Year 2010. We regularly run Inheritance Tax seminars to assist clients with their understanding of inheritance tax, assess how much their potential tax bill would be and offer solutions to mitigate this where possible.
It seems a long time ago that Inheritance Tax (IHT) was forecast to largely disappear; due to the Conservative Party announcement in 2007. However, with the state of the economy, the Conservatives (in August 2009) said that no changes would happen until 5 years after their election. This has been re-confirmed since the election of the coalition government. Labour have already stated that they have gone as far as they want. Therefore, there is little hope of IHT disappearing!
IHT rules changed previously in October 2007, which we and our clients welcomed; the Chancellor allowed spouses and civil partners to utilise unused allowances from the death of the first partner in the planning for (and at the time of) the second death. The rules are extremely complex and you should contact us for further information on this aspect, especially if you are already a widow / widower who may benefit from this.
Inheritance Tax is levied currently on any individuals who are not making an inter-spousal transfer. The first band of IHT in the 2013-14 tax year is taxed at 0% (Nil Rate Band). All transfers above the Nil Rate Band are taxed at 40%.
The Nil Rate Band is currently frozen at £325,000, but was previously lower at £312,000 (2008-09).
There are many lifetime allowances and gift exemptions that can be utilised by an individual. There is also a range of ways in which to mitigate or reduce any tax liability, although the Exchequer is continually cutting back on methods that specialists like ourselves utilise.
Even if you have an existing arrangement you should certainly consider reviewing it in light of the many changes over recent years.
Many factors need to be taken into account when considering an inheritance planning solution. If a client were given illegal or incorrect advice then their family may be liable to a substantial tax bill, so it is extremely important to ensure professional and appropriate advice is taken from an independent and fully qualified individual.
How can we help?
We are specialists who at any one time are working with other specialists to help our clients. We provide newsletters and bulletins but we are not a free service. We offer a range of free to attend seminars – for more information please contact us.
When should I review my Inheritance Tax situation?
If you believe your family would have to pay an Estate Tax bill then it is worthwhile reviewing the situation as soon as possible. You may not need to action immediately but t at least you would be aware of the most tax efficient methods of saving money. For example you should begin using your annual and gift allowances where possible because you can only carry forward one years annual allowance, all others would be lost.
Always seek professional advice to ensure they are not using the most cost efficient method of Inheritance Tax planning.
Next Seminar Dates
AisaProfessional is a trading style of Aisa Direct Ltd, an Independent Financial Adviser authorised and regulated by the Financial Conduct Authority. Tax advice is not regulated by the Financial Conduct Authority.
AisaProfessional is a trading style of AisaDirect Ltd, an Independent Financial Adviser authorised and regulated by the Financial Conduct Authority. 4 Fordbrook Business Centre, PEWSEY, Wiltshire, SN9 5NU Registered in England: 3621676
