Inheritance Tax is often described as a voluntary tax. This does not mean that at the time you die the Revenue asks whether you would like to pay the tax or not. However it is a voluntary tax in the sense that if you take reasonable steps in good time, the tax can be avoided. Usually the tax is easy to calculate. When you die the first £325,000 is exempt and everything else is taxed at 40%. If you are a widow or a widower then you will normally benefit from the transferrable Nil Rate Band so that your allowance will double to £650,000. However this is not always the case. The rules around Inheritance Tax are very complex. There is usually a lot at stake and it therefore makes sense to take advice from a company which specialises in IHT Planning. Our advice is user friendly. We find that there is little point in offering a solution which clients don’t like and which they will not implement.
Top Ten Tips on Inheritance Tax
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Did You Know? .....
4. That every couple gets a £1m exemption. Correct? No – wrong. Some couples will, but most will not.
5. That for £150 per month you can leave your children over £50,000 tax free?*
(Based on a 75 year old female in normal health for her age.)
8. As recently reported in the press many believe that they can transfer their house to their children and after 7 years that there is no IHT? Don’t get caught out by the Gift with Reservation of Benefit rule.
11. That you can give unlimited sums to your children free of Inheritance Tax and there is no 7 year time limit?
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