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Inheritance Tax

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.

0800 689 0923

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.

See all our reviews here.

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    Consultations at a time to suit you

    Nigel Johnson

    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 0800 689 0923, 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.

    0800 689 0923

    You can always email us directly at info@njlegalservices.co.uk with any questions you have about our services.

    Client reviews

    5.0 rating

    Richard Greasley – We were recommended by a friend to use Nigel and the service has been fantastic. We had a virtual meeting to discuss our requirements and then within a few days the Wills were typed up by Nigel for me and my Wife to review. Would highly recommend and use for other needs in the future.

    5.0 rating

    Martin Y – Excellent service. Nigel provides all the information required in a professional and patient way. Would highly recommend him.

    5.0 rating

    Catherine Hicks – I contacted Nigel during the pandemic so all our discussions had to be held over the telephone. He was very professional, friendly and nothing was too much trouble. Any questions I needed to ask were answered quickly. I could recommend him for his services to anyone who may be interested.

    5.0 rating

    Mr Fred Spencer – A friend of mine sent me the document written by Nigel, which was mainly about reducing the care fees that may be charged by our local council if either myself, or my wife needed to go into care. I found the document to be very informative and easy to understand. I then decided to talk to Nigel about what we may need to do in terms of our own Estate planning. Within minutes of talking to Nigel, he made me feel that he really had our interests at heart and he gave me quite a bit of free advice. As a result of this advice, we decided to commission NJ Legal Services to draw up new wills for us both and to change the ownership details of our property with the Land Registry. I would not hesitate to recommend NJ Legal Services and obviously, Nigel in particular, to friends and family. A truly easy and friendly experience.

    5.0 rating

    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.

    5.0 rating

    Keith Hawley – This service was a gem we did everything on line fast and trouble free everything in plain English easy to understand the introduction booklet Nigel has produced was most helpful especially the information about Lasting Power Of Attorney saved me a fortune.

    5.0 rating

    Nisita Vadher – We found NJ legal services online when we were searching for a solicitor to write out a will for my parents. I received a call back within a couple of hours of requesting this service. Nigel was incredibly helpful and explained the procedure in great detail. We were unsure of how this process worked and he had made sure to break down the process for us making it very simple and easy to understand. All of our questions were answered for us and the process took no longer than 1 hour! We are incredibly happy with the service that we have received and will definitely be recommending NJ Legal services to all our family and friends. Thank you very much Nigel.

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