Inheritance Tax

Our Inheritance Tax Planning Service

We are able to offer a comprehensive tax planning service. This service is available to those seeking to minimise their tax liability before they die and also to those involved in the Administration of an Estate.

Call our specialist Wills & Probate Solicitors now on 0844 800 9860 for a free telephone consultation or request a call back through this website.

Inheritance Tax Rules

Inheritance tax is charged on a person’s estate after their death. If the value of the estate is above a specified amount, currently £325,000, anything above the threshold is taxed at 40%.

Assets left to a husband, wife or civil partner or to a registered UK charity are exempt from inheritance tax.

Ways to Minimise Your Inheritance Tax Liability

You can minimise your inheritance tax liability by taking steps during your lifetime to reduce the value of your estate.

Annual exemptions

You can give up to £3,000 each year to your children with no inheritance tax implications. Over ten years, this would reduce the value of your estate by £30,000.

You can also give £250 each year to other individuals. For example, four grandchildren could in this way receive £1,000.

You can make wedding gifts of £1,000 to £5,000 to friends and family depending on your relationship.

Potentially Exempt Transfers (PETs)

Gifts of more than £3,000 can be made but you must survive the receipient by seven years otherwise the value of the gift is included in your estate and taxed. However, the rate of tax is reduced down from 40% on a sliding scale the longer you survive.

If you give your property to your children but continue to live in it, it is classed as a gift with reservation of benefit and tax would still be charged as if you were the owner. To avoid the tax, it is essential that when making a gift, you do not continue to benefit from it.

If you have more than enough income to meet your needs, you can make regular gifts from the surplus. However, you must not give away your income and live on your capital. Written records must be kept and we can advise on this.

Our specialist Wills & Probate Solicitors are here to help and can provide a free initial consultation over the phone. Please call 0844 800 9860 or request a call back through this website.