When you pass away, the Inland Revenue will add up the value of the assets in your estate. In the current tax year (2005/06), if your assets plus chargeable gifts made in the previous years amount to £275,000 or less, your family does not have to pay any inheritance tax (IHT) on them. This is known as the 'nil rate band'. If your assets exceed £275,000, IHT at 40% is due on everything over this threshold. This fact is very worrying for individuals with large portfolios and property owners, especially given recent property price increases.
There are however some ways in which inheritance tax liability can be mitigated. For example, no IHT is payable on assets that pass between a husband and wife, however this often merely postpones the liability. Careful planning in advance and the use of trusts can assist in reducing the IHT problem, but all cases are unique and warrant individual attention. ifasw.co.uk has connections with specialist advisers, suitably qualified to assist you in this area. They will happily apply their experience to your circumstances in an effort to mitigate the effects of inheritance tax. All of the advisers that we recommend work on a no obligation basis, so there is no commitment on your part by simply discussing your requirements. If you are concerned about inheritance tax and would like to know about what options are available to you, just remember that ifasw.co.uk is here to help - Just ask us by clicking here!