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Call us for further information on:
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0116 240 4402
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or alternatively email us at:
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ifa@greyfriars.co.uk
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Inheritance Tax is considered to be one of the more insidious taxes that hits the middling wealthy, often by virtue of inflated house prices. A flat rate of 40% is payable over and above the nil rate band (currently £312,000) with exemptions for gifts passing between spouses and to charities and political parties.
There are also exemptions available for qualifying business and agricultural property and, of course, it should be remembered that gifts made over 7 years before death occurs will fall out of account.
A number of smaller exemptions also exist to include an annual exemption of £3,000 and a small gifts exemption of £250. Gifts out of income are also, normally, exempt.
The exercise of Inheritance Tax mitigation, therefore, is often a balancing act with decisions being made as to how much money can be given away, at what time and to whom whilst retaining sufficient money to continue one’s own standard of living for the remainder of your life.
Investing into certain products which allow gifts to be made whilst retaining some interest in the capital or income remain available and it can be a useful exercise to invest into exempt property where appropriate.
Often, the use of trusts is made to get money out of one’s estate whilst, at the same time, allowing the donors some degree of control over the capital and the eventual recipient of the trust monies.
Greyfriars Asset Management LLP has a great deal of experience in advising on all of these aspects as well, where all else fails, in advising on appropriate insurance policies to cover the amount of tax due on death.
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