Book a free home consultation today

Inheritance Tax Planning

What is Inheritance Tax?

Inheritance Tax (IHT), once the problem of only the very wealthy, now affects many more people, often those who have worked hard and saved all their lives. It is estimated that the number of people facing an Inheritance tax bill has increased by 3,000 in the last tax year. It is a tax that must be paid before assets can be inherited by your chosen beneficiaries. Certain beneficiaries may be exempt from Inheritance Tax (such as qualifying charities) and certain assets may be disregarded for tax purposes (such as qualifying business interests).

Inheritance Tax is currently charged at 40% for assets above the IHT threshold also known as Nil Rate Band.

This is a complicated area of Estate Planning that seldom has an off-the-shelf solution, so if you would like more information tailored to your circumstances, please contact us today.

Personal Nil-Rate Band

An individual has a Personal Nil Rate Band of £325,000 – this is the maximum amount that can be transferred on death before Inheritance Tax is payable. An unused Nil Rate Band is transferable between spouses and civil partners.

The Residential Nil Rate Band

The Residential Nil Rate Band is a family home allowance that enables to pass on your family home to children or grandchildren tax-free. This allowance will be added to the existing Nil Rate Band of £325,000 but will be gradually withdrawn for estates worth more than £2 million. Once phased in, the additional allowance will add a maximum of £175,000 to the existing Nil Rate Band by year 2020 to 2021.

Inheritance Tax Liability

Working out your inheritance tax liability can often be complicated. Examples of issues to be taken into account include the value of the property, the date of death, to whom and in what way the property was left on death and the effect of any earlier potentially exempt transfers of property.

Inheritance Tax liability can be reduced or potentially eliminated with some careful planning so more of your wealth can be passed on to future generations.

Talk to our expert team today to find out more.

Contact Us

What happens if I have an accident?

For the answer to this and many other questions, head over to our service pages or contact us today

What Our Customers say about us

Philips Trust Corporation Ltd service has been extremely good. We have been kept informed with developments as they happened, communication between themselves and us being very good.

Mr Anonymous

Used Philips Trust for Trust management

Sign up for our newsletter

Sign up to get the latest industry news and more…

  • This field is for validation purposes and should be left unchanged.

Copyright 2019 Philips Trust Corporation | All Rights Reserved

Complaints | Privacy Policy | Cookie Policy | Terms & Conditions | Careers