INHERITANCE TAX

PLANNING

Have you maximised the amount of your hard-earned cash you pass on to your heirs?

Inheritance tax is payable when someone transfers ownership of their assets, usually on death. Each individual is entitled to a nil-rate band of £325,000, under which no inheritance tax is payable. Traditionally, few estates exceeded this nil-rate band.

However, the house price boom of recent years has pushed more people into the IHT net. Alongside ISAs, death-in-service benefit, foreign homes or less obvious assets such as paintings or cars, this has boosted the value of an average estate.

The tax rate for all assets over the nil-rate band is 40% so it is possible to build up a large bill quickly. Also, inheritance tax becomes payable relatively soon: it is due six months after the end of the month of death.

 

This does not give the administrators much time to sell a house or liquidate other assets if that is necessary. With that in mind, if you unexpectedly find your estate now exceeds the taxman’s limits, what can you do?

 

Although the Government closed many of the loopholes on inheritance tax in the 2006 Budget, a number of exemptions and allowances do remain. Where possible, you should aim to maximise use of these exemptions and allowances if you wish to pass on as much of your hard-earned cash to your heirs as possible.

Do contact us if you'd like to find out more.

 

The Financial Conduct Authority does not regulate estate planning.

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Culverhouse & Co. is the trading name of Culverhouse & Co Ltd and Culverhouse Financial Planning Ltd.

 

Culverhouse & Co Ltd Company No: 6426365

Culverhouse Financial Planning Ltd Company No: 08470047

Registered Offices: 7 High Street, Farnborough Village, Kent, BR6 7BQ

Email: info@culverhouse-accountants.co.uk

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Culverhouse & Co Ltd is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales.

Details about our audit registration can be viewed at www.auditregister.org.uk for the UK and www.cro.ie/auditors for Ireland, under reference number C001690279.

Culverhouse Financial Planning Ltd is Authorised and Regulated by the Financial Conduct Authority for Financial Services. FCA Registration Number: 600931

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The guidance and/or advice contained in this website is subject to the UK regulatory regime and is therefore restricted to consumers based in the UK.

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