Inheritance Tax (IHT)

Currently – A payment to the government is required if the value of an individuals assets which includes property, investments, money & possessions is greater than £325,000. The amount required to be paid is 40% of the value above this threshold level. Married couples and civil partners can transfer the allowance to each other so the surviving spouse has a combined £650,000 limit allowed.

With prolonged rises in UK property prices the number of families facing large inheritance tax bills has risen dramatically year on year.

Recent changes – The government has announced that a new additional allowance for those owning property will be introduced in stages. This Family Home allowance will increase the total IHT threshold amount for individuals to £500,000 by 6th April 2020 (£1m for couples)

Even with this increased allowance inheritance tax charges are still forecast to rise with specialist financial advice from one of our FCA approved advisors steps can be taken to reduce future liabilities.
If you have your home in a discretionary trust or are considering doing so, our partners are specialists in advising you what to do and have developed products designed to meet the changing Inheritance Tax rules. Click below for general inheritance tax planning or enquire about specialist trusts.