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 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. There are exemptions, business and agricultural relief, potentially exempt transfers, lifetime transfers and capital gains tax to take into account.
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.
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.