Tag Archives: inheritance tax

Regular gifts out of your income is tax efficient

regular gifts

One tax planning opportunity that many thought the chancellor might restrict was the exemption from inheritance tax for regular gifts out of an individual’s income. Inheritance tax is designed to tax transfers of capital so if the donor can demonstrate that the gifts are made out of surplus income then the transfers are not taken…

Christmas is a time for giving

Many were expecting the chancellor to announce changes to inheritance tax (IHT) in his Autumn Budget, However, like capital gains tax (CGT), the rules have remained broadly the same as last year. That means that each tax year individuals may make gifts of up to £3,000 in total and that amount is not included in…

Maximising your Estate when the Country is in Economic Downturn

When considering your inheritance tax position, you want to be sure you’re passing the maximum amount possible to the beneficiaries of your Estate. As the country is in economic downturn due to Covid-19, it is more important than ever to maximise reliefs now. This blog will cover some simple tax planning steps to help you…

How specialist IHT advice helped Mr Greenwood pass his property onto his children and save £84,000 in tax

Mr. Greenwood has recently retired and was concerned about the potential inheritance tax liability on his Estate, currently estimated to be worth approximately £2 million. Mr Greenwood wanted his family to receive the maximum amount possible from his estate. He was happy to pay the tax he owed, but like many of our clients, he…

Avoid these common inheritance tax mistakes to reduce the impact on you and your family

IHT

We recently wrote a blog debunking the most common misconceptions about Inheritance Tax (IHT). Today we want to address the most common mistakes made, so you can be sure you’re avoiding them and minimising your exposure to IHT. Inheritance tax is affecting more ordinary people every year, so getting a grasp on the details is…

The most common misconceptions about Inheritance Tax, and why you may need to start planning

The huge increases in house prices over recent decades has been one of the main reasons why inheritance tax has started to hit more and more ordinary people. Understanding Inheritance tax and how you may be affected by it, is vital. If you begin planning for it now, you avoid passing a tax bill onto…

Inheritance tax in the spotlight

We are expecting major changes to inheritance tax (IHT) in the March Budget following two reviews by the Office of Tax Simplification (OTS) and also a report by an All Party Parliamentary Committee. IHT is perceived as a complicated tax with numerous fairly trivial reliefs and exemptions. Currently the tax only generally applies to transfers…

Inheritance tax to be simplified

The Office of Tax Simplification (OTS) have undertaken a detailed review of Inheritance Tax (IHT), which is perceived by many as a complicated tax. The government normally takes account of OTS recommendations and their report is likely to lead to future changes to the rules. We will keep you posted as the changes may necessitate…

New inheritance tax rules for passing on the family home started on 6 April 2017

New inheritance tax rules for passing on the family home started on 6 April 2017. This new relief should be taken into consideration when drafting your Will and we can work with your solicitor to make sure your Will is tax efficient. From 6 April 2017 an additional nil rate band of £100,000 is now…

Furnished holiday letting business is not a business for inheritance tax (IHT) relief

A furnished holiday letting business is treated as a trade for most tax purposes. For example, capital allowances are available on furniture, and CGT entrepreneurs’ relief is available on disposal of the business. However, a recent tax case has determined that a holiday letting business in Cornwall did not qualify for inheritance tax business property…