Inheritance Tax
increasing inheritance tax receipts
Often mentioned in the news, inheritance tax (IHT) is still not widely understood due to some fairly complex rules which can seem as if they change on a regular basis.
This is concerning as it is something that affects thousands of people every year. Frequently thought of as only being an issue for the extremely wealthy, many are surprised to learn that with rising property prices, more families than ever are facing an inheritance tax bill.
In fact, the amount of IHT collected totalled a staggering £7.1 billion in the 2022-23 tax year, an increase of £1 billion on the previous year!
protect your wealth
If your estate has an inheritance tax liability, your beneficiaries will have to pay the inheritance tax bill. This is usually due before any money has been paid to you family. This may worry you that your hard earned savings and investments will go to the Government and not to your loved ones.
Fortunately, there are lots of ways you can be proactive to combat potential inheritance tax problems. However, finding the right solution for your set of personal circumstances can be complicated and a daunting task to take on yourself.
Talking to an independent financial adviser about your situation can make a real difference and potentially save your loved ones thousands of pounds.
Click the box below to download our simple inheritance tax guide. It contains easy to understand explanations of many of the rules surrounding inheritance tax including the ‘7 Year Rule’ and should help you to decide if you need help with this problem.
reduce inheritance tax
A few examples of the types of strategies that could potentially reduce inheritance tax:
Making large gifts prior to your death (be aware of the ‘7 year rule’).
Making smaller cash gifts throughout your lifetime.
Put assets and/or property into a trust. Provided certain conditions are met, they are out of your estate for IHT purposes.
Investing in AIM stocks and shares ISAs* (also known as IHT- free ISAs).
Whether you are single, married or in a civil partnership and have direct descendants or not will change how the inheritance tax rules apply.
If you are concerned your loved ones may have to pay an inheritance tax bill, get in touch today for a complimentary review where we can discuss some ways we can help you keep more wealth within your family.
* As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest.