Tax Returns in Wirral-Dufton Kellner

Inheritance Tax Planning in Wirral

Inheritance Tax (IHT) is payable where an estate exceeds the Government's set threshold, which is often referred to as the 'nil rate band'.

Despite ongoing uncertainty in the housing market, many people need to appreciate that the value of their home may take their estate into the IHT chargeable bracket.

The full rate of IHT is 40% on the estate value in excess of the threshold, which has been frozen at £325,000 until April 2015. Taxable gifts made up to seven years before death are added back into your estate and tax is calculated on the inclusive value.

Early planning can play a key part in minimising the IHT liability. Most gifts made more than seven years before death will escape tax. A number of IHT exemptions and reliefs may apply to gifts made within the seven years before death, including gifts made to a qualifying charity and an 'annual exemption' of £3,000.

Following recent changes to the legislation, those who leave 10% or more of their net estate to charity may be eligible to pay a reduced IHT rate of 36%.

Transfers of assets between spouses and civil partners are exempt from IHT. The nil-rate band is also transferable between partners to the extent that it has not been used on the first death. This means that in most cases the unused proportion of a deceased partner's nil-rate band can be added to the total nil-rate band on the second death. However, it is necessary for the executor or personal representative dealing with the estate to send the appropriate forms and supporting documentation to HMRC.

Dufton Kellner in Wirral can advise on a range of IHT planning strategies, which may include:

  • Making the most of reliefs, including business property and agricultural property relief
  • Making the best use of exemptions
  • Ensuring that your Will and estate plan are tax-efficient and up-to-date
  • Life assurance policies
  • Lifetime gifts of assets
  • 'Generation skipping', so your estate passes directly to your grandchildren
  • Using trusts to manage your assets and any income generated
  • Valuing your business

Through careful planning, it may be possible to reduce the inheritance tax due on your estate and thus safeguard your family's wealth. In addition, a well-drafted Will can help to ensure that the wealth you have built up during your lifetime benefits the right people on your death - and it can also be structured to save tax.

The experienced team at Dufton Kellner can assist with a range of tax planning issues. As well as helping to calculate your IHT liability, we can deal with forms for probate, and provide effective strategies to enhance your business and personal wealth.

Contact Dufton Kellner today for further inheritance tax information and planning strategies in the Wirral area.