Inheritance Tax

Inheritance tax (IHT) has been much in the news as a result of rising house prices forcing more and more families, in quite modest homes, into the IHT bracket.

New measures introduced in the October 2007 pre-Budget report have eased the IHT burden, but this remains a complex area and seeking professional advice would be wise. That’s where we can help.

The effect of the new rules – which also apply retrospectively – is that the any part of the nil rate band (the sum on which no IHT is paid, currently £300,000 and rising to £312,000 for 2008-09) is automatically transferred from the first spouse or civil partner to the other on their death.

In most cases the whole estate is left to the survivor, which means that they benefit from a double nil rate band. For many people, this means the estate will be taken out of IHT on the second death.

However, for those with very large joint estates, business assets or agricultural assets, it would be advisable to carry out more detailed planning, involving the use of trusts, otherwise valuable reliefs may be lost.

Our expert team can also advise on a number of options for reducing IHT liability, including:

• Alternative Investment Market (AIM) shares and portfolios
• gifts, including lifetime gifts
• life insurance policies held in trust
• wills.

To find about more about how we can help you, contact us on 01656 867167 or at tellmemore@clayshawthomas.com to arrange a free, no obligation first meeting.

Top