Helping you to Protect and Preserve your Estate

Inheritance tax (IHT) is generally payable upon death and during the life of someone where they give away assets. The great thing is that IHT can be reduced significantly by tax planning in advance.

Every person is entitled to an IHT-free allowance of £325,000 for the tax year 2013/14 which is set to remain at that threshold until April 2018. A married couple or registered civil partnership would generally have no IHT to pay if their estate on second death is less than £650,000.

While net estate values might be less than £325,000 now because of a mortgage of some other liability, it is possible that at the time of death the estate is worth much more as debt is being paid off. Once the estate is over the IHT tax-free allowance, IHT is paid at 40% which is a significant tax charge levied on your assets.

If you have significant wealth you need to consider IHT at an early stage. To discuss the options available to you, please contact us for more information.