Inheritance Tax Receipts at Record Levels

The 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.

Inheritance Tax, Estates, Estate PlanningAmy Wood18 July 2023inheritance tax, estate planning, iht

Understanding Inheritance Tax and Financial Planning - Minimise Your Tax Burden

Learn 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.

Inheritance TaxAmy Wood23 May 2023inheritance tax, estate planning

Having The Inheritance Conversation

For 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.

Estate Planning, Inheritance TaxAmy Wood7 November 2022inheritance tax, estate planning, Wills

Making Use of the Inheritance Tax Residence Nil Rate Band [Video]

Introduced 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.

[Video] Don't Fall In To The 14 Year Inheritance Tax Trap

You 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.

Inheritance Tax, Estate Planning, TrustsAmy Wood19 September 2022inheritance tax, 7 year rule, 14 year rule, estate planning, trusts

[Video] Why Do You Need A Will?

In this video, Richard Higgs takes you through why you need a Will, and crucially, what happens if you don’t have a valid Will in place. Take steps today to ensure your estate is treated according to your wishes.

Estate PlanningAmy Wood16 May 2022Wills, estate planning

Don't Fall In To The ISA Inheritance Tax Trap

The 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).

The Cost Of Being Unprepared In Estate Planning

Estate planning is about you deciding what you would like to happen to everything you own on your death and how to provide for those you’ll leave behind. Ensuring your affairs are in order not only makes things easier for your loved ones but can also reduce inheritance tax and protect your estate for your beneficiaries.

Estate PlanningAmy Wood11 May 2022Harold Stephens Ltdestate planning

Making Trusts Simple

When people talk about trusts, they can seem complex and expensive, perhaps potentially only for the super-rich. The reality is they don’t have to be. Put simply, a trust is a vehicle to protect your assets and to guarantee your loved ones financial stability in the future – something we all want to achieve after building a nest egg.

Estate Planning, TrustsAmy Wood11 May 2022Harold Stephens Ltdestate planning, trusts

Inheritance Tax-Free ISAs

As 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.

What is Business Propery Relief (BPR)?

Business 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.