You are now leaving the Assured Private Wealth Ltd website, and are being connected to a third party web site. Please note that Assured Private Wealth Ltd is not responsible for the information, content or product(s) found on third party web sites.
You are now leaving the Assured Private Wealth Ltd website, and are being connected to a third party web site. Please note that Assured Private Wealth Ltd is not responsible for the information, content or product(s) found on third party web sites.
Inheritance Tax Planning Advisers and Financial Consultants
Welcome to Assured Private Wealth, your trusted partner in inheritance tax planning. We understand that planning for the future, especially when managing inheritance and tax liabilities, can be daunting. That's why our team of inheritance tax consultants is here to guide you through the process, ensuring your financial assets are protected, and your loved ones are financially secure.
Understanding Inheritance Tax
Inheritance tax (IHT) is crucial when passing on your assets to the next generation. Without proper IHT tax planning, your loved ones may face a substantial tax burden, potentially impacting their financial security. Our dedicated IHT tax advisory team specializes in helping individuals and businesses create effective strategies to minimize IHT liabilities while safeguarding your wealth.
Here are some key points to understand about inheritance tax in the UK:
Thresholds: In the UK, a tax-free threshold called the "nil-rate band." As of 2022, the standard nil-rate band was £325,000 per individual. This means that if the total value of your estate is below this threshold, there will be no inheritance tax to pay.
Residence Nil-Rate Band (RNRB): In addition to the standard nil-rate band, there's an additional allowance called the Residence Nil-Rate Band (RNRB), which applies when you leave your main residence to your direct descendants (e.g., children or grandchildren). As of 2022, the RNRB was £175,000 per individual. This can be added to the standard nil-rate band, potentially increasing the tax-free threshold.
Exemptions and Reliefs: Some assets and gifts are exempt from inheritance tax. For example, gifts to a spouse or civil partner, registered charities, and certain agricultural or business assets may qualify for exemptions or reliefs.
Taper Relief: If you die between three and seven years after making a potentially exempt transfer, the tax on that gift is reduced on a sliding scale known as "taper relief."
Payment and Filing: inheritance tax is usually payable within six months of the end of the month in which the person passed away. Administrators of the estate are responsible for calculating and paying the tax. They must also complete and submit the relevant inheritance tax forms to HM Revenue and Customs (HMRC).
Trusts: If you've set up trusts as part of your estate planning, they may also be subject to inheritance tax. Different rules apply to trusts, so seeking professional advice is essential.
Inheritance Tax on Property
In the United Kingdom, inheritance tax can apply to property as part of an individual's estate when they pass away.
Here's an explanation of how inheritance tax relates to property in the UK:
Value of Property: When a person in the UK passes away, the value of their property is included as part of their estate for inheritance tax purposes. Property includes the family home and any other residential or non-residential properties they may own.
Nil-Rate Band and Residence Nil-Rate Band (RNRB): Each individual in the UK is entitled to a Nil-Rate Band, the threshold below which inheritance tax doesn't apply. Also, if an individual passes their main residence to their direct descendants, they may benefit from an additional allowance called the Residence Nil-Rate Band (RNRB).
Tax on Excess Value: If the total value of the property and the estate exceeds the Nil-Rate Band and RNRB (if applicable), inheritance tax is levied on the amount exceeding these thresholds.
Lifetime Gifts of Property: If a person gifts property during their lifetime and then passes away within seven years of making the gift, the value of that property may still be subject to inheritance Tax. There are rules and exemptions related to such gifts.
Exemptions and Reliefs: Some properties may be exempt from inheritance tax, such as the family home, when left to a spouse or civil partner. Certain agricultural or business properties can also qualify for exemptions or reliefs.
We offer a range of advice and guidance on the most appropriate type of will for your situation and how to execute your wishes. This is yet another aspect of wealth management which appears to be relatively straightforward on the surface, but can very quickly become complicated.
Understanding the Inheritance Tax 7-Year Rule
The UK's 7-Year Rule in inheritance tax planning is a fundamental concept. It primarily pertains to lifetime gifts made by individuals. When someone makes a lifetime gift, it is categorized as a Potentially Exempt Transfer (PET) for inheritance tax purposes, meaning that no inheritance tax is immediately payable on the value of the gift.
The critical aspect of the 7-Year Rule is that a clock starts ticking from the date the gift is made. If the person making the gift survives for a full seven years after making the gift, it becomes entirely exempt from inheritance tax. This implies that if they pass away seven or more years after making the gift, the value of that gift is not included in their estate for Inheritance Tax calculation.
However, the full inheritance tax rate applies if the individual passes away within the first three years of making the gift. For those who pass away between three and seven years after making the gift, a reduced tax rate called "taper relief" applies. This taper relief gradually decreases, making the tax liability progressively lower.
In practice, the 7-Year Rule is crucial for effective inheritance tax planning. Individuals can reduce their estate's overall inheritance tax liability by strategically making lifetime gifts and surviving for seven years.
Nevertheless, it's essential to carefully consider the implications of the 7-Year Rule and consult with inheritance tax financial advisers when making significant gifts to ensure that estate planning aligns with personal goals and circumstances.
Inheritance Tax Planning From Experts
At Assured Private Wealth, we recognize that each client's situation is unique. Our approach begins with an in-depth consultation where we gather information about your assets, financial goals, and aspirations.
Tax Planning Strategies: Our IHT financial consultants understand the intricacies of UK tax laws and regulations. They can devise tailored strategies that allow you to minimize your tax liability legally. These strategies may include using the Nil-Rate Band, RNRB, and other available allowances. Lifetime Gifting: One common tactic is to make lifetime gifts strategically. However, these gifts may be subject to Inheritance Tax if you don't survive for at least seven years after making them. Our IHT financial advisers can help you navigate this "7-Year Rule" and employ it to your advantage. Trusts: Trusts can be an essential tool in Inheritance Tax planning. Our inheritance tax planning advisers can guide you in setting up the right type of trust and transferring assets efficiently, often resulting in reduced tax obligations. Business and Property Transfers: Transferring a family business or agricultural property requires careful planning. Our IHT planning advisers can structure these transfers to minimise Inheritance Tax. Charitable Giving: Charitable donations can also play a role in reducing Inheritance Tax. Expert inheritance tax financial advice can help you make charitable gifts tax-efficiently.
- Help spouses share their tax-free allowances efficiently. - Deal with international tax rules and non-domicile issues. - Sort out tax matters for unmarried couples with assets in different countries. - Assist with the paperwork for filing inheritance tax returns. - Offer advice on giving lifetime gifts and what's exempt from tax. - Plan charitable donations to lower your overall tax. - Set up trusts and transfer assets to save on taxes. - Manage the transfer of family businesses and agricultural properties, considering tax implications. - Guide you through the process of appealing inheritance tax decisions. - Make the most of tax allowances like the Residence Nil-Rate Band. - Make sure your wealth is passed down efficiently to the next generation. - Discuss how trusts can help achieve specific goals. - Calculate and reduce potential inheritance tax bills. - Handle inheritance tax for properties you own. - Find life insurance options to cover inheritance tax. - Create wills and legacies that minimize your tax bill.
Why Choose Our Inheritance Tax Planning Advisers?
At Assured Private Wealth, we are committed to providing tailored solutions and expert advice. Here's why you should consider reaching out to our IHT planning specialists:
Expertise: Our inheritance tax accountants possess in-depth knowledge of the UK's tax laws and regulations, allowing them to develop effective strategies for minimizing your Inheritance Tax liabilities.
Personalized Service: Our regulated inheritance tax advisers understand that every client's situation is unique. Our team takes the time to understand your needs and goals, crafting a plan aligning with your objectives.
Proven Track Record: Our successful inheritance tax planning record speaks for itself. We have helped numerous individuals and families protect their wealth and efficiently pass it on to the next generation.
Up-to-date Knowledge: Inheritance tax laws can change, and our regulated inheritance tax consultants stay updated with the latest developments, ensuring your plan remains compliant and effective.
Contact Our Inheritance Tax Accountants
When managing your inheritance tax, seeking expert guidance is paramount. Our team of experienced inheritance tax accountants at Assured Private Wealth is here to assist you in navigating the complexities of inheritance tax planning and ensuring your financial legacy is preserved for your loved ones.
