Once only a concern of the uber rich, rising property prices and a threshold that has remained at £325,000 (£650,00 for married couples) saw a record high for Government receipts generated by the Inheritance Tax levy in 2019.
The idea of working your whole life and then having to pass a large slice over to the state can leave a bitter taste in many people’s mouths. However, with careful planning there are ways to minimise or even eradicate any inheritance tax liability and ensure that your life’s wealth goes to the people you want it to. Unfortunately, it is all too common to see forced property sales and huge tax payments simply because people did not seek proper advice at the right time.
The current Nil Rate IHT Band threshold is set at £325,000 which means that any amount above this demands tax is paid at 40% - a significant amount and one which can cause dismay if plans are not made. This illustrates the importance of keeping a check on the combined value of all your assets and savings, otherwise your family and loved ones may have a very high and unexpected tax bill.
And, with many feeling that Inheritance tax is unfair given that you have paid tax on your earnings, savings and assets during your life, investigating how you can reduce your inheritance tax liability is the only way to minimise your payments to HMRC. There are some very simple steps to protecting your wealth and they could end up saving you and your family a fortune.
At Skybound Wealth, our Advisers are experienced in dealing with all aspects of financial and wealth management including Inheritance Tax. We can advise specifically on this subject, or more appropriately, we are well placed to offer advice across your portfolio to ensure a cohesive approach is adopted, delivering you the very best results both now and in the future.
There are various methods to navigate the complexities of IHT, there are various gifting allowances and annual exemptions which can be used to offset any future charges and also a wide range of financial solutions which can be used to minimise any tax due.
At Skybound it’s our mission to enable you to take care of your family for generations to come.
By helping you to take care of all your financial planning matters now, you can ensure that your life’s wealth goes to the people you want it to.
For the 2020/21 tax year, everyone is allowed to leave an estate valued at up to £325,000 plus the new 'main residence' band of £175,000 giving a total allowance of £500,000 per person. You can also gift up to £3000 in a tax year. This can be rolled over for one year.Any gifts to charities and political parties aren’t subject to IHT charges.
Only those in particular employment areas which are deemed as high risk who die in active service for example armed forces personnel, police, firefighters and paramedics, plus humanitarian aid workers.
When you die, assets left to your spouse or registered civil partner, as long as they’re living in the UK, are exempt from inheritance tax. Also, your partner's inheritance tax allowance/ nil rate band rises by the proportion of your allowance that you didn't use.
You can reach us directly by calling us between the hours of 8:30am and 5pm at each of our respective offices and we will immediately assist you.
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
The guidance and/or advice contained within this website are subject to the UK regulatory regime, and are therefore targeted at consumers based in the UK. Skybound Wealth Management Ltd is authorised and regulated by the Financial Conduct Authority. Registered Office - MBP3, Meadowhall Business Park, Carbrook Hall Road, Sheffield, S9 2EQ. Registered Number 04479650, England. Financial Conduct Authority Number 217994.
The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK. The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk. Neither Skybound Wealth Management Ltd nor its representatives can be held responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.
