Inheritance Tax Planning is crucial in passing as much of your estate as possible to who you wish to receive it, rather than to HMRC.
What is Inheritance Tax?
Inheritance Tax is a tax paid by UK domiciled individuals on the estate of someone who has died.
If an event triggers the tax, this could result in up to 40% of the amount paid to HMRC. Therefore, if there has already been a tax event, we can assist with compliance matters, ensuring the correct reporting is completed. Furthermore, we can assist you in claiming the correct exemptions that can minimise your tax.
We can advise on:
- The nil rate band and residence nil rate band.
- Spouse exception and its limitation for non-UK domiciled spouses.
- Gifts out of income and the evidence required.
- Business property and agricultural property relief.
- Heritage relief.
- The taxation of potentially exempt transfers, chargeable lifetime transfers and gifts with reservation of benefit.
- Tax events should never occur without a proper strategy to minimise any tax owed.
By planning ahead, we can help ensure that you make the most of your exemptions and that your estate is prepared to claim the necessary credits, but also have the correct paperwork to evidence the claim.
This may include:
- Restructuring your assets to be more tax efficient.
- Providing you with information and advice on the evidence you need to keep to ensure a claim is successful.
- Looking at your business agreements and structuring.
- Advising you where cash might need to be invested.
- Advising you on the correct structuring of your wills to ensure they do not deprive you of some reliefs that you thought you might enjoy.
Although inheritance tax can be a complicated subject, seeking professional planning advice can minimise the complexity for your beneficiaries.
Get in touch to find out how we can help.