You might have an idea of what you want to leave behind for your family and friends once you pass away, whether that is an asset or some cash. When you do go, however, your estate might be subject to inheritance tax (IHT), meaning that your beneficiaries could receive less than you want them to.
With careful planning, IHT can be minimised. There are a number of ways to reduce the bill on your estate, which is why we are here to help. As accountants and advisers, we can help make sense of your estate and some of the specific tools that you have at your disposal so you can pass everything on to your beneficiaries as you intend.
IHT is charged at 40% on everything within an individual’s estate that is worth over the £325,000 threshold. Anything below that escapes taxation, so some people choose to keep the value of their estate below, or as close as possible to, £325,000. You can achieve this by passing on assets and capital to your beneficiaries as gifts while you are still alive. The earlier you make the arrangements, the greater your chance of taking full advantage of the tax opportunities available and thereby maximising the amount that goes to your beneficiaries. If a gift is made within the last seven years of your life, tax on the value of the gifts may still be due.
These are just a few of the ways in which our clients reduce their IHT liabilities, and as you can see, IHT plans can run into years. It can influence your exit from your business or your retirement and long-term care, too, so you might want to consider this sooner rather than later.
Contact us today to discuss how we can help your business.
Call us or send a message and we will arrange an informal conversation with one of our partners so we can get to know more about your needs.