Don’t let your loved ones lose out

Inheritance Tax (IHT) is under the spotlight, due largely to the continued rise in house prices and freezing of IHT thresholds. These days, you don’t have to be hugely wealthy to be affected by IHT – the hated tax can cost your estate thousands of pounds when you die; however, the good news is that expert planning can legitimately mitigate this tax, meaning you can pass on assets to your family as you’d intended.

IHT receipts on the up

The latest IHT figures released in October make interesting reading. Total HM Revenue and Customs (HMRC) receipts for April 2022 to September 2022 were £3.5bn, £0.4bn higher than in the same period last year. Government IHT receipts were bolstered by £557m taken during September alone.

What is IHT?

IHT is a tax payable on money, savings, property and other assets you pass on when you die and potentially on some gifts you make during your lifetime. If the estate is liable for IHT, it is usually payable at 40%.

Do you know what your IHT threshold and allowances are?

Everyone has an IHT threshold or nil-rate band, which is an amount on which no IHT is payable. This isn’t straightforward as there are many factors affecting the thresholds. Your threshold could be £325,000, £500,000, £650,000 or £1 million - or more, or even less.

Gifting assets

To reduce the amount of IHT payable, many families consider giving assets away during their lifetime. Again, this isn’t straightforward as there are various allowances and gifting needs to be handled in the right way. Getting the right balance between gifting money during your lifetime and ensuring you have enough for your future years requires careful planning.

Your local independent adviser – here to help

If you would like to find out about your IHT threshold or understand more about planning ahead and passing on your assets, Gary Tromans from Equitas Financial provides independent advice to individuals and companies in your area for all of your financial planning needs.

I am committed to putting clients at the heart of everything I do and providing the best possible service, taking time to understand your needs and aspirations. I pride myself in offering clients a truly independent financial planning service. My 35 years of banking and financial services experience puts me in a great position to develop the most suitable individual solutions from the best offerings in the whole of the market. I’m only a phone call away and based locally to you, so if you have any questions or would like to understand what your own IHT liability may be or discuss any aspect of estate planning please get in touch. I offer a no fee/no obligation initial consultation.

Gary Tromans, Independent Financial Adviser

The value of your investment can go down as well as up and you may not get back the full amount you invested. The purpose of this article is for general information and should not be interpreted as a personal recommendation or advice.