Inheritance Tax
Contrary to the belief of some, Inheritance Tax (IHT) not only affects the very rich, but other people may be liable without realising. Few taxes are quite as emotive – or as politicised – as IHT. The structures into which you transfer your assets can have lasting consequences for you and your family. We can help you choose structures and trusts designed to protect your assets and give your family lasting benefits.
It is crucial to find out now if you potentially have an IHT liability – or could do so in future years. Historically, IHT planning used to be an activity confined to the very rich. However, growing affluence means that this is no longer the case. Even families and individuals with a relatively moderate level of wealth should consider planning ahead to ensure that their assets are passed on to their loved ones as efficiently as possible. Property price increases have also dragged many middle-class working families into the IHT bracket.
Effective estate planning is about getting the right balance between maintaining access to your money when you need it and saving tax. This is because, in general, the more tax-efficient a solution is, the less access you have to your assets. Safeguarding your own financial future is very important, and giving too much away could put this at risk.
How we can help you
IHT has been a part of UK law for more than three centuries. Despite proving a political hot topic over recent years, it continues to affect thousands of families every year. At Quove Accounting, we can help you to consider if you need to be worried about it too.
Ways to reduce your Inheritance Tax liability
Depending on your circumstances, it might prove simple to reduce or eliminate your IHT problem. Some of the potential options require at least seven years to be fully effective, so it’s important to look into them now rather than later.
What happens to your money should the worst happen
No one wants to contemplate their own death. However, if you ignore the issue of IHT, you could inflict further headaches upon loved ones during a very difficult time.
Personal Services:
Income Tax
Income Tax is exactly as it sounds: a ‘tax on your income’. However, not all income is taxable, and even then you are only taxed when you earn above certain levels.
Capital Gains Tax
Along with Inheritance Tax, Capital Gains Tax (CGT) is often referred to as a voluntary tax. With careful CGT advice, it is often possible for individuals and/or trusts to reduce, totally avoid and/or delay payment of CGT.
Estate Planning
Inheritance Tax is no longer confined to the super-rich. If, like many people in the UK, your assets exceed £325,000, being hit with a 40% bill upon inheritance can exacerbate an already stressful time for your loved ones.
Trusts
Creating and maintaining a trust is no easy feat – it’s a roller-coaster ride of legislation changes and tax complications.
