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Inheritance Tax

Inheritance Tax Planning & Advice

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.

If you would like advice about inheritance tax, we cover across Nottingham, Derby, Sheffield, the Midlands, the South and beyond – get in touch today for advice.

Call us on 0800 689 0923
info@njlegalservices.co.uk

We offer a free, no obligation home visit at a time to suit you, to discuss your needs. Contact us today.

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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).

Give us a call to discuss inheritance tax planning today on 0800 689 0923, or visit our contact page for more details.

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Graeme Tanner – Excellent service, friendly, professional and prompt, don’t hesitate to use nigel and his team.

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Iris Wheeldon – Nigel visited us at home to arrange a number of matters, more so our Powers of Attorney. Nigel explained everything in a really clear manner and checked our understanding throughout the meeting. When Nigel had left I felt like a weight had lifted! I can’t thank him enough. A lovely gentleman offering a very important service. I would strongly recommend Nigel to anyone needing help in planning their estate.

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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.

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