Inheritance Tax Planning (IHT)
Inheritance Tax (IHT) is charged on your estate when you die by HMRC in the UK (with certain significant exceptions). It is also charged retrospectively on any gifts made to individuals in the 7 years before your death. IHT may also be due on some types of Trusts used to pass on wealth or assets.
The issue of inheritance tax is an increasing problem. During the 2013/2014 financial year three in every 100 estates attracted an IHT charge. By 2018/2019 this is likely to rise to affect 10 in every 100. Your Inheritance Tax liability depends on your domicile (generally your motherland, or possibly your adopted motherland) rather than where you live, so even those living away from the UK can be caught in the tax net. It also catches most UK assets for those not domiciled here.
IHT is here to stay – the tax represents a significant proportion of income for HMRC. It therefore makes sense to plan accordingly to ensure that its effect is reduced, or even eliminated.
IHT planning should form part of your overall investment and retirement strategy and our team of experts can help you maximise the value of your estate in the most tax efficient manner – contact us today to find out how we can help.
You can also download our guide to Inheritance Tax Planning from our resource library here.