Losing a family member is never easy, and the last thing you will want to think about is whether or not you are liable for paying inheritance tax. However, it is essential that you check so that you are aware of your rights and can prepare your family for the future ahead.
So what is inheritance tax?
Inheritance tax is a tax levied on the transfer of an individual’s estate on his/her death to non-exempt beneficiaries (subject to a nil rate band).
Inheritance Tax is usually paid on a property when somebody dies, although it is also sometimes payable on trusts and gifts which are made within 7 years of the individual’s death.
Most estates don’t have to pay inheritance tax, as they fall within the “nil rate band”. As long as your estate’s worth is not above £325,000 (gifts and trusts included) then you won’t have to pay 40% inheritance tax on any sums exceeding this threshold.
However, if you think your estate may be liable to inheritance tax on your death it is important to plan in advance so your tax liability will not be greater than it should be. There are many opportunities for tax efficient planning, if you put them in place in good time.
We can help you to alleviate the stress of worrying about the future, and provide you with the tax advice you need. Whether you are worried about inheritance tax costs or calculating your annual income tax, we have the expertise to answer all your questions and give you the best plan for the future.Talk to Barnes Roffe today Barnes Roffe has tried to ensure that the contents and information it provides in its website is accurate at the time of posting. Unfortunately it cannot guarantee the accuracy of contents or information contained in its pages and any person choosing to act on this information should contact a Barnes Roffe partner prior to taking any action