Tax and estate planning

When considering how much inheritance tax will be payable on your estate at the time of your death you should add up all of your assets and then deduct any debts. Gifts made in excess of £3,000 per financial year in the seven years preceding your death will also be taken into account when assessing the size of your estate for inheritance tax purposes. 

The first £325,000 of your estate (‘the Nil Rate Band’) is taxed at 0%. Anything over and above that amount is taxed at 40%.
 
If married or in a civil partnership, any unused Inheritance Tax threshold from a late spouse or civil partner can be claimed by the executors on the second death and transferred to the second spouse or civil partner's estate. This can increase the Inheritance Tax threshold of the second partner from £325,000 to as much as £650,000, depending on the circumstances.
 
Gifts to your spouse, civil partner and/or charities are exempt for inheritance tax purposes and there are also tax allowances for some gifts of agricultural or business property.
 
If your estate is of considerable value you should consider obtaining Inheritance Tax Planning advice.

Contact us to discuss what's right for you or visit our department page for more about the services we offer.