More and more people are becoming liable to Inheritance Tax (IHT), yet it can be a mitigated tax. Even with the effective doubling of the IHT threshold for married couples (and civil partnerships) many people are still being caught by this tax.
IHT is no longer a concern just for the wealthy. It is a growing worry for many people, especially homeowners who have benefited from growth in the value of their properties. Property is not the only asset that makes up a person’s estate. For example, your estate also includes your contents and possessions, your savings and investments and any life assurance not in trust.
Over the years, the IHT thresholds have, in real terms, steadily fallen. The threshold (nil rate band) has not kept pace with property inflation and as such, more and more people are falling into the trap of paying inheritance tax. IHT is payable at a flat rate of 40% on assets above the nil rate band. Unlike many other taxes though, there are plenty of things you can do now to make sure you pass as much of your wealth on to your family and friends, and not the taxman.Get in touch