Inheritance Tax Planning
Inheritance tax (IHT) may be payable on an individual’s estate after death or on certain gifts made during their lifetime.
Tax legislations states that IHT is payable on chargeable transfers of value made by an individual during their lifetime or on their death.
For IHT purposes when a person dies they are deemed to have made a transfer of all their property. IHT is payable by people who are domiciled in the UK. If you have the UK as your permanent home all of your assets, with a few exceptions, will be subject to IHT.
The rate of tax chargeable on lifetime transfers is 20%. The rate of tax on death is 40%. IHT will only become payable if the chargeable transfer exceeds the Nil Band Rate. The Nil Band Rate tends to change at the start of every new tax year. The current Nil Band Rate for the tax year 2015/2016 stands at £325,000 per person.
Inheritance tax can be complicated, here at Futurity Financial Services Ltd, we will guide you through all the appropriate options to you. We will also help you to understand IHT better and how it may affect you, your family and your estate.