Inheritance Tax Calculation and Planning
Inheritance Tax can cost loved ones hundreds of thousands in the event of your death, yet it’s possible to legally avoid huge swathes of it, or possibly pay none at all. The most important thing to do is examine whether you’ll pay and what to do about it.
Everyone is allowed to leave up to a certain amount without their inheritors needing to pay tax on it. The amount is set by the government and is called the nil-rate band, because it’s the amount you pay a ‘nil-rate’ of Inheritance Tax on Currently everyone is able to leave £325,000 completely tax-free
Above that amount, anything you leave behind is subject tax of 40%. So for example, if you leave behind assets worth £500,000, your estate pays nothing on the first £325k, and 40% on the remaining £175k – a total of £70,000 in tax.
If your assets exceed the nil rate band why not call Charlotte Halsall on 01454 856010 or e-mail her at email@example.com for information on strategies to reduce how much inheritance tax your beneficiaries pay.