Inheritance Tax Planning & Advice
We know that tax can be complicated, that’s why we are here to answer and questions or concerns you have.
What is Inheritance Tax?
The value of everyone’s estate is taken into account when evaluating Inheritance Tax. All UK domiciled persons have an individual allowance currently £325,000 before any Inheritance Tax is due this is also known as the Nil Rate Band Threshold (NRBT).
What is the Nil Rate Band?
There is now also an additional residential Nil Rate Band allowance that may reduce your inheritance tax this currently stands at £125,000 per person and has increased in April 2019 to £150,000 and then finally to £175,000 in April 2020. This can only be claimed if you own a property and are gifting this to children including adopted, step children and fostered children.
NJ Legal Services provide advice and services for inheritance tax planning across the UK – get in touch today for advice.
We also provide further financial services and legal services, such as Will Writing.
We offer a free, no obligation consultation at a time to suit you, to discuss your needs.
You can always email us directly at info@njlegalservices.co.uk with any questions you have about our services.
Review from Mrs Susan Hammerton
We were visited at home by Nigel who was friendly and very professional. His help and advice was given with patience and courtesy. Everything was explained perfectly. We are very pleased to recommend NJ Legal services.
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Consultations at a time to suit you
Nigel Johnson
Estate Planning Consultant
STEP Registered & IPW Member
As meetings in person can be difficult with the current climate, we provide consultations over the phone and through video calls.
Contact us to book an appointment.
Working out Inheritance Tax
This can be a complex area and we can provide advice in relation to the use of Trusts and the residential Nil rate band.
What is not always understood is how the Tax works and how it applies to a person’s estate. There are many considerations to take into account when working out Inheritance Tax.
- Exemptions
- Business and Agricultural Relief
- Potentially Exempt Transfers
- Lifetime Transfers
- Capital Gains Tax
Give us a call to discuss inheritance tax planning today on 0115 822 7440, or visit our contact page for more details.
Allowances between Married Couples / Civil Partners
There are allowances between married couples and civil partners to consider that are not available between partners who live together but are not married.
Also, the thresholds have not been increasing on an annual basis as they once were; therefore more and more people mainly through property ownership are falling into the Inheritance Tax bracket.
Who pays the tax to HMRC?
Funds from your Estate are used to pay Inheritance Tax to HM Revenue and Customs (HMRC). This is done by the person dealing with the Estate (called the ‘Executor’, if there’s a Will).
Your beneficiaries (the people who inherit your estate) do not normally pay tax on things they inherit. They may have related taxes to pay, for example if they get rental income from a house left to them in a Will.
People you give gifts to might have to pay Inheritance Tax, but only if you give away more than £325,000 and pass away within 7 years.
We can assess and advise where appropriate and recommend steps to mitigate some or all of the Inheritance Tax liability. This advice is part of the Estate Planning process.
What is the Inheritance Tax Rate?
The standard Inheritance Tax rate is 40%. It’s only charged on the part of your estate that’s above the threshold.
All UK residents have an individual allowance currently of £325,000 before any Inheritance Tax is due – this is also known as the Nil Rate Band Threshold (NRBT).
Example:
Your Estate is worth £500,000 and your TAX-FREEthreshold is £325,000. The Inheritance Tax charged will be 40%of £175,000 (£500,000 minus £325,000).
We are available from 9 am – 9 pm Monday to Friday and 9 am – 12:30 pm on Saturdays.
You can always email us directly at info@njlegalservices.co.uk with any questions you have about our services.
Client reviews
Jean – AAA star service! Nigel you made the process for my daughters and myself pain free. Very professional, respectful and easy to speak with. We highly recommend!
Margaret Read – I would like to thank Nigel for all his help and advice given during the months after losing my partner.
I live in Salisbury, Wiltshire and was tearing my hair out for Non info here. I found Nigel online and what a find – very, very helpful he even offered to come and see me here but we managed on line. Nigel is very knowledgeable helpful and gave me honest information to all my questions.
I would recommend NJ Legal Services to anyone.
Andrew Woodward – Nigel could not have been more helpful. His knowledge and experience was invaluable and he went out of his way to help us. Thank you Nigel. Highly recommended.
John Johnson – Prompt, good presentation, couteous accompanying letter infact first class I would heartedly recommend the company.
Eileen Burton – Really good caring service. In terms we understood. Also fair price. Would recommend. Many thanks.
Alison Moore – They are a friendly service, efficient and all work has been done to a good standard. No hesitation in recommending their services.
Alexander Rolland – Excellent Company, very efficient and very good service from the start, to getting the will.
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