“Inheritance Tax is a voluntary tax, paid by those who distrust their heirs more than they dislike the Inland Revenue!”
Inheritance tax (IHT) is a tax on money or possessions you leave behind when you die, and on some gifts you make during your lifetime.
However, a certain amount can be passed on tax-free, which we call the ‘tax-free allowance’. This is also known as the ‘nil rate band’.
Everyone in the 2014-2015 tax year has a tax-free inheritance tax allowance of £325,000. The allowance has remained the same since 2010-11, and will stay frozen until at least 2017.
There are also a number of gifts that you can make during your lifetime or in your will that are also tax free.
By taking advice to arrange your affairs correctly, it is perfectly possible to either reduce or completely avoid the tax due upon death. Working with our sister firm, IQ Financial Advice, we can help you to organise your money and other assets through the making of gifts, along with the possible use of trusts and tax efficient investment solutions.
Where mitigation is not possible or after careful planning, an Inheritance Tax liability remains, the liability can be provided for by way of Life Assurance with the proceeds placed into Trust for the beneficiaries of your Will thus ensuring the funds are available to meet the liability and gain Probate releasing your estate to your family in a timely manner.
Speak to us to see how we may be able to help ensure it’s your family and not the tax-man who receives the fruits of your hard labour.