The taxman raked in a record £4.7bn in inheritance tax (IHT) last year, with thousands more families dragged into paying.
Often described as a voluntary tax for people who don’t plan, it tends to be those in the middle who feel the pain.
Families on lower income don’t pay it, while high net worth individuals will have planned for it.
Take the news of the recent death of Britain’s third richest person, the Duke of Westminster. His son, Hugh, has now inherited an estate worth £9bn and is expected to pay very little in inheritance tax.
Significantly more than the £325,000 IHT threshold set by Government, there is a high probability that the family have used HRMC rules and allowances to mitigate paying IHT.
So, do you have a potential IHT problem, and if you do how can you plan?
First identify if you have a problem. Do you have property or investments worth more than £325,000?
If you do, do you want you or your family to pay 40% to the Government?
Do you know what your HMRC approved allowances are and have you used them?
If you have assets in property, have you considered trusts?
If you have assets in investments, are they in IHT friendly products?
If you’re unsure of the answers to any of these five questions, then the best thing to do is seek impartial, independent advice.
For a free, no obligation initial chat to help you plan your future, call us on 0800 0112825, e-mail astallard@wwfp.net or take a look at our website www.wwfp.net.
Sources:
1 – The Telegraph – Inheritance tax, and how the Dukes of Westminster avoid it on their £9bn fortune – Accessed 11th August 2016
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Worldwide Financial Planning Ltd who are authorised and regulated by the Financial Conduct Authority. 'The FCA does not regulate Credit Cards, Will Writing and some forms of mortgage and Inheritance Tax Planning.'
Information given is for general guidance only, and specific advice should be taken before acting on any suggestions made.
All information is based on our understanding of current tax practices, which are subject to change.
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