Inheritance Tax (IHT)
Inheritance Tax (IHT) – Manchester Solicitors
If your estate is more than the Inheritance Tax threshold, your estate may attract a 40% Inheritance Tax charge.
What is the IHT threshold?
Past and Present IHT Thresholds
|From||To||IHT Threshold / nil rate band|
|6 April 2009||present||£325,000|
|6 April 2008||5 April 2009||£312,000|
|6 April 2007||5 April 2008||£300,000|
|6 April 2006||5 April 2007||£285,000|
|6 April 2005||5 April 2006||£275,000|
What is the transferable nil rate band?
Most married couples and civil partners leave their estate to the surviving partner taking advantage of the spouse / partner exemption, i.e. no inheritance tax to pay. When the second partner dies his or her estate may now benefit from using their nil rate band together with that of their deceased partner. This effectively increases the threshold to as much as £650,000.
How to save Inheritance Tax?
Reducing the value of your estate during your lifetime by way of gifts can reduce the tax payable, but there are limits on the amount you may gift and you should take legal advice in this regard.
By placing your assets into a trust you are no longer the legal owner of those assets and therefore the value of your estate is reduced, creating inheritance tax savings.
Latimer Lee Solicitors Limited work closely with Independent Financial Advisors who may be able to advise you on investment based products that offer tax planning advantages.