IHT is currently payable where a person’s wealth is more than £325,000. This figure has remained the same since 2009. Thus, if you own your house and have some savings, life assurance policies, or business assets, your estate could be liable.
In April 2017, an additional nil rate band was introduced when a main residence is passed onto a direct descendant after a death. This additional Residence Nil Rate Band (RNRB) is £175,000. 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 RNRB for an additional claim, up to the current thresholds.
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.
We would love to meet you, which is why we offer all new clients a free, no obligation initial consultation. 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