Beating inheritance tax is at the forefront of the concerns of many individuals who are concerned about providing for their family after they are gone. With rising house prices not being matched with equal rises in the inheritance tax threshold, more and more homeowners are finding that they will be subjected to the tax on death.
When it comes to beating inheritance tax, consider the following:
- The first £312,000 of your estate is in the nil-rate band, and so suffers no tax.
- The excess value over this band is taxed at a 40% rate.
- You can greatly reduce the taxable value of your estate by taking advantage of exemptions. There is a £3,000 annual gift exemption, a £250 per person per year small gifts allowance and wedding gift exemptions.
- Spousal exemption means that your spouse or civil partner can inherit your estate with no inheritance tax charge.
- You can make use of a trust or life assurance to set aside portions of your estate so that they are not subject to inheritance tax, while also providing income and then capital to your inheritors once you have passed away.
Beating inheritance tax is quite possible, but it can also be complex and it may be worthwhile to get professional advice. By filling out our short online form, you will be put in touch with expert UK financial consultants, who are offering a free, no obligation first consultation.