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Tax

We can help reduce or defer tax liabilities and plan for a tax efficient future. Our highly experienced team can advise you on income tax, capital gains tax and inheritance tax.

Tax law is becoming increasingly complex and the rules are constantly changing. We understand the pressures on your time and the need to protect your hard earned money, property and possessions. We can simplify what may seem a complex and daunting process so you have one less thing to worry about.

Every client we advise has their own unique set of circumstances. You can be confident our tax planning solutions will be tailored around your own personal goals.

Inheritance Tax

Inheritance tax is a major source of worry for many people who are understandably concerned that the government will take the lion’s share of the money in their estate, leaving future generations with only a fraction of the wealth they worked so hard to create.

We understand these anxieties and can help take the stress out of planning for inheritance tax on your money, property and possessions. It is a complex area and our specialist advisers have an intimate understanding of the best way to plan ahead to help minimise the amount of inheritance tax your estate will pay.

Inheritance tax advice is recommended if you have assets worth more than the current inheritance tax threshold of £325,000. Your estate may have to pay inheritance tax at the current rate of 40% on its value on anything above this amount.

Inheritance tax matters we can assist you with include:

  1. Setting up tax efficient will trusts
  2. Making lifetime gifts
  3. The transferable nil rate band legislation allowing married couples and civil partners to minimise inheritance tax
  4. Making tax-efficient charitable bequests
  5. Tax relief available on agricultural and business property; and
  6. Inheritance tax-saving arrangements for high-net-worth estates

Our specialists may advise, for instance, on tax efficient arrangements for your beneficiaries. You can be certain that our up-to-date knowledge will help you take advantage of all the inheritance tax planning strategies available.
When you contact us we will provide you with a free, no-obligation consultation in the first instance and then advise you on our rates for the service you need.

How much inheritance tax will I have to pay?

Currently, the first £325,000 of your estate is taxed at 0%. This is known as the ‘Nil-Rate Band’ and is not subject to inheritance tax. The threshold for the ‘Nil-Rate Band’ is revised by the Government from time to time. However, the current Nil Rate Band came into force in 2009 and is not expected to change until the tax year ended 5th April 2021. Any change will be announced in the Budget each year. Any assets over and above this threshold are taxed at the rate of 40%. So, for example, if you have a total estate, including the family home, worth £500,000 then you will pay 40% tax on £175,000. This works out at a hefty tax bill of £70,000.

On 14 September 2015, the Government proposed amendments to clause 9 of Finance (No. 2) Bill 2015 which introduces a new inheritance tax residence ‘Nil Rate Band’ (RNRB), for deaths on or after 6 April 2017, where residential property is gifted to lineal descendants.

These new provisions are very complex particularly the rules relating to who constitutes a lineal descendent. However in broad outline, from 6 April 2017, the RNRB will be available for residences inherited by direct descendants in addition to the existing Nil Rate Band. The RNRB will be phased in from 2017/18 when it will be £100,000, increasing by £25,000 each year until 2020/21 when it reaches £175,000. As with the Nil Rate Band, any unused RNRB can be transferred to a surviving spouse or civil partner, with the effect that the maximum combined inheritance tax threshold for such couples will be a total of £1m by 6 April 2020.

There are a number of ways in which you can minimise the amount of inheritance tax you will need to pay. Among other things, these include:

  • Making tax-free gifts to charity;
  • Setting up an appropriate trust;
  • Making lifetime gifts.

If you own assets above the Nil-Rate Band, and with the rise in house prices many people now do who wouldn’t consider themselves rich, then you should talk to your solicitor as soon as possible about the measures you could take now to save inheritance tax.

Our Tax Solicitors are backed by nearly four decades of experience. Our legal practice and team of Wills and Probate Solicitors have a strong track record of achieving favourable client outcomes. For expert legal advice use our contact form or call us on 0808 250 6017 today.