Taking the right action now could help your family in the future.
Inheritance Tax (IHT) is a major part of estate planning, usually when IHT needs to be paid, it’s already too late to do anything about it.
By taking action in advance to make sure it’s managed correctly could reduce the value of your estate, and in turn, any future IHT bill.
Newcastle Financial Advisers Ltd can help you plan ahead with this complex matter and leave your loved ones what they deserve.
Newcastle Building Society introduces to Newcastle Financial Advisers Limited for advice on Investments, Pensions, Life and Protection Insurance and Inheritance Tax Planning.
Inheritance Tax is a tax on the assets that belong to you when you die. Assets include the total of everything owned by you and a share of anything owned jointly. Here are the most common assets:
- Personal property
- Future Inheritances
- Life insurance death benefits not in trust
Every individual has a nil-rate band, which means you’re allowed a certain amount of assets before IHT becomes payable. For the tax year 2023/2024 the nil-rate band is £325,000 per individual. If your estate is worth more than this your executor may be liable to pay tax at a current rate of 40%.
The government has introduced a main residence nil-rate band, which is up to £175,000 for the 2023/2024 tax year. This can also have the effect of reducing your potential IHT bill further.
There are a range of options that could help reduce the potential IHT tax liability in the future. Investing a little time and effort now means you can rest assured the people you want to leave your possessions and wealth to will not be faced with an unexpected bill to pay on your death.
A few examples of these options are gifting, charitable donations and taking advantage of your annual exemption allowance. However, this is complicated area and taking financial advice is important.
HM Revenue and Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.