Inheritance Tax Advice Nottingham, Derby & Sheffield
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).IMPORTANT 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 will increase 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.
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.
- Business and Agricultural Relief
- Potentially Exempt Transfers
- Lifetime Transfers
- Capital Gains Tax
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.
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.
April-Dawn Martin – Nigel Johnson has been extremely helpful, honest, thoughtful with my personal details & thoroughly professional with regards to our Will. Along with other details I felt totally at ease & he has come across as extremely trustworthy, & really cared about us. He has made me feel like I’m his only Client, so thank you so much Nigel for caring enough to deal with us.
Doreen – Nigel came to our house as my mum needed to make a new will. He was very professional but at the same time was friendly and easy going and that instantly put my mum at ease. He explained everything really well and l don’t think l could have found anyone better.
Thank you Nigel
Stephen Taylor-Edwards – Excellent service. Did exactly as promised when promised and very reasonable price. Recommend without hesitation.
Why Choose Us?
We have over ten years’ experience in this important area and you will find that we work to a strict code of conduct with both compliance and a client’s charter in place.
A duty of care to our clients is our number one priority, which means that we are only satisfied when our clients are more than satisfied with the work that we have produced for them.
We find that clients often thank us for explaining important points and procedures that they were not only unaware of, but others failed to point out to them.
We are qualified to give you the best advice and service, we also offer a free no-obligation discussion – at at time and place to suit you. We have ELITE PROstatus on Bark and have been recognised for our good services.