Inheritance Tax can impact the assets passed on to loved ones, currently taxed at 40% above certain thresholds. However, strategies like legacy giving can reduce inheritance tax. Legacy giving involves allocating a portion of assets to a charitable cause in your Will, reducing IHT from 40% to 36% when donating at least 10% of your estate to charity. Find out more about your allowances and how legacy giving could become part of your estate plan.
Read MorePassing on your pension plan: A tax-efficient way to leave your assets to your loved ones
In the UK, your pension plan does not usually form part of your estate, meaning that it can be passed on to your family without being subject to inheritance tax. This makes it one of the most tax-efficient ways to leave your assets to your loved ones.
To pass on your pension plan, you will need to nominate who you want to inherit it by filling out a form with your pension provider. You can choose to nominate as many people or charities as you like and decide the portion each of them should receive.
Read MoreThe government's inheritance tax receipts have reached a record £7.1bn for 2022/23, and are forecast to increase to £8.4bn by 2027/28.
This increase is being driven by a number of factors, including the freeze on the inheritance tax free threshold, commonly referred to as the 'nil rate band', until at least 2027/28. This coincides with the surge in property prices during the pandemic period, further contributing to the overall increase in tax revenues.
If you are concerned that inheritance tax may be due on your estate, it is important to take proactive steps to minimize your potential tax burden. An independent financial adviser can help you to work out the total value of your estate, calculate how much tax your loved ones would potentially owe, and explore options for managing the potential tax bill.
Read MoreDid you know your ISAs form part of your estate on death? They are then potentially subject to inheritance tax. Many people have saved large amounts with ISAs, taking advantage of their tax-free status over the years.
With the average inheritance tax bill standing at £200k and £7.1bn recorded in inheritance tax receipts in the most recent tax year, don't give away your money unnecessarily. It is possible to convert your ISAs to inheritance tax-free status in two years.
Read MoreOne of the benefits of being part of the 1987 Foundation is the annual 'get-together'. This month, we were delighted to sponsor a tour around the University of Bristol Botanic Garden followed by a cream tea for the supporters of BRACE. As a fairly new Trustee, Richard was thrilled to meet so many long-term supporters of the charity.
Discover how charitable giving provides an opportunity to make a positive impact on society while potentially benefiting your loved ones by reducing the tax burden on your estate.
Read MoreLearn about the freeze on the inheritance tax free threshold and its impact on tax revenues, particularly with the surge in property prices. Understand the implications and stress of paying the inheritance tax bill before receiving anything from the probate process.
Find out about the current nil rate band and available reliefs and exemptions. Seek proper financial planning to minimize your potential inheritance tax burden. Contact us for assistance in assessing your estate's value, calculating potential tax liabilities, and exploring options to manage the tax bill and utilize applicable reliefs and exemptions.
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Finding it hard to keep up with all the budget changes this year?
Join Richard Higgs for an analysis of what the Autumn Statement means for your later life financial planning. The webinar covers income tax, dividends, capital gains tax, EIS and VTCs, inheritance tax, pensions and social care - a very comprehensive analysis for you!
Read MoreThe end of the year has come around so quickly, I can’t believe it’s time to start planning for 2023 already!
I want to share a checklist to help you get financially prepared for 2023. If you manage to tick all of these off, you’ll have the clarity and confidence to make your financial plans a reality.
Read MoreDid you know you can reduce your inheritance tax rate from 40% to 36% through charitable gifting in your Will? This could result in a significant reduction to any large inheritance tax bill. Watch to find out more.
Read MoreFor many, the prospect of passing on wealth to future generations is a significant motivation for carrying out financial planning. Knowing that your hard-earned nest egg is going to be used to help loved ones with major milestones such as going to university, getting married or buying a house can be extremely gratifying.
Having a conversation with your family about your intentions is not always easy especially when managing other’s expectations. Read on to find out how we can help.
Read MoreIntroduced in 2017, the Residence Nil Rate Band (RNRB) is an amount additional to the Nil Rate Band (NRB) that could be passed on tax-free against the value of the family home. The RNRB could save you tens of thousands of pounds worth of inheritance tax but the rules aren’t that simple.
Richard Higgs explains what you need to know in this brief video.
Read MoreYou may be aware of the '7 year rule' for gifting with regards to inheritance tax (see our guide for full details if not). It is news to some, however that you may need to look even further back - 14 years to be exact - to ensure you are not liable to pay inheritance tax. Find out more in the video and as always, if you have any questions please don't hesitate to get in touch for a complimentary review of your financial circumstances.
Read MoreThe tax efficient benefits of saving through an ISA are widely known. Introduced in 1999, today the ISA is seen as a cornerstone to savings and investments. Many people have amassed a significant savings pot, which of course is tax-free.
However, the tax benefits only apply during the holder’s lifetime, meaning the funds will form part of their taxable estate for the purposes of inheritance tax (IHT).
Read MoreAs you are undoubtedly aware, an ISA is one of the most tax efficient investment vehicles possible. However, did you know that ISAs are included within your chargeable estate on death and are therefore subject to Inheritance Tax like any other asset?
It could be that your family end up paying 40% tax on the ‘tax-free’ ISAs you worked so hard to build up!
There is a solution. Since 2013 it has been possible to invest in Inheritance Tax-Free ISAs. Enabling individuals to do inheritance tax planning within the ISA tax wrapper for the first time.
Read MoreBusiness Property Relief (BPR) can provide a valuable relief from inheritance tax. Investments that qualify for BPR can be passed on free from inheritance tax upon the death of the investor, provided the shares have been owned for at least two years at that time. There are a number of critera that must be met. Read on to find out if BPR could be suitable for your situation and risk appetite.
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