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Understanding inheritance tax can be complex, but at Martin Shepherd Solicitors, we are here to provide expert guidance and support to ensure your affairs are handled with care and efficiency. Inheritance tax (IHT) is a tax on the estate of someone who has passed away, and it is important to navigate this aspect of estate planning carefully to minimise tax liabilities and ensure that your assets are distributed according to your wishes.
Our team of experienced solicitors specialises in inheritance tax matters and can offer tailored advice to help you effectively manage your estate and plan for the future. Whether you are looking to minimise tax liabilities, set up trusts in Wills, or create a tax-efficient Will, we are here to assist you every step of the way.
Inheritance Tax (IHT) is a tax imposed on the estate – encompassing residential property, money, and possessions – of individuals who have passed away. Generally, no IHT is applicable if:
Even if the estate falls below the threshold, reporting its value may still be necessary.
The threshold can rise to £500,000 if you pass on your home to your children, including adopted, foster, stepchildren, or grandchildren.
For married couples or civil partnership couples: Any unused threshold can be transferred to the surviving partner’s threshold upon death.
Want to know more? We offer advice on inheritance tax at our Potters Bar, Hertford and Finchley offices.
The standard Inheritance Tax rate stands at 40%, applicable only to the portion of the estate surpassing the threshold. For instance, if your estate is valued at £450,000 with a tax-free threshold of £325,000, the Inheritance Tax would be 40% of the excess £125,000.
In certain cases, the estate may qualify for a reduced Inheritance Tax rate of 36% on specific assets if 10% or more of the net value is given as gifts to charity.
Additionally, reliefs such as Business Relief enable certain assets to be transferred either free of Inheritance Tax or with a reduced levy. Agricultural Relief is also available for estates incorporating farms or woodland.
The responsibility for administering the estate typically falls on the executors named in the deceased’s Will. They pay Inheritance Tax to HM Revenue and Customs (HMRC). Beneficiaries, who inherit the estate, typically do not bear tax burdens on their inheritance.
However, they might be liable for related taxes, such as income tax on rental income from inherited property. Furthermore, individuals receiving gifts might face Inheritance Tax obligations if the total exceeds £325,000 and the donor passes away within seven years.
Get additional advice on inheritance tax at our Hertford, Potters Bar and Finchley offices.
At Martin Shepherd, we offer comprehensive inheritance tax assistance with tailored tax-efficient solutions to suit your needs. Here is how we can help:
With Martin Shepherd Solicitors, you can rest assured that your inheritance tax affairs are managed with precision and expertise. We will work closely with you to ensure peace of mind for you and your loved ones.
Need help? We offer advice on inheritance tax at our Finchley, Potters Bar and Hertford offices. Contact us today. Gareth Humberstone gh@martinshepherd.co.uk or Debbie Gibbsdg@martinshepherd.co.uk 0208 367 3230.
An inheritance tax is a tax imposed on the estate of someone who has passed away. The responsibility for paying inheritance tax typically falls on the executors named in the deceased’s Will, who pay it to HM Revenue and Customs (HMRC). Beneficiaries who inherit the estate usually do not bear the tax burden directly. Our experts can provide clarity on the threshold and offer tailored advice to minimise tax liabilities.
For further advice on inheritance tax, please contact us here at Martin Shepherd Solicitors.
The current inheritance tax threshold is £325,000. If an estate’s value exceeds this threshold, inheritance tax is applicable at a rate of 40% on the portion of the estate exceeding the threshold. However, certain reliefs and exemptions may apply, such as the residence nil-rate band for passing on a home to direct descendants.
For further advice on inheritance tax, please contact us here at Martin Shepherd Solicitors.
There are several strategies to minimise inheritance tax liabilities, including making tax-efficient gifts during one’s lifetime, setting up trusts, and structuring one’s Will effectively. Consulting with inheritance tax solicitors, like those at Martin Shepherd Solicitors, can provide tailored advice on minimising tax liabilities while ensuring your assets are distributed according to your wishes.
For further advice on inheritance tax, please contact us here at Martin Shepherd Solicitors.
Passing on your home to your children, including adopted, foster, stepchildren, or grandchildren, can potentially increase the inheritance tax threshold to £500,000 due to the residence nil-rate band. This can help reduce or eliminate inheritance tax liabilities on the property, provided certain conditions are met.
For further advice on inheritance tax, please contact us here at Martin Shepherd Solicitors.
Yes, there are reliefs and exemptions available for inheritance tax, such as Business Relief and Agricultural Relief, which may allow certain assets to be transferred either free of inheritance tax or with a reduced levy. Additionally, gifts to charity may qualify for a reduced inheritance tax rate of 36% if 10% or more of the net estate value is given to charity.
For further advice on inheritance tax, please contact us here at Martin Shepherd Solicitors.
It is advisable to review your Will and inheritance tax planning strategy regularly, especially when there are significant changes in your financial circumstances, family situation, or tax laws. Consulting with inheritance tax solicitors can help ensure that your Will remains up-to-date and aligned with your tax planning goals. If you need advice on inheritance tax get in touch with Martin Shepherd Solicitors today.
Martin Shepherd Solicitors can provide comprehensive assistance with inheritance tax planning, including advising on tax implications, reviewing and updating your Will, and devising tax-efficient strategies tailored to your circumstances. Our team of experienced solicitors will work closely with you to offer advice on inheritance tax.
If you are involved in a business dispute, then it is sensible to try to resolve the matter as quickly and cost-efficiently as possible to
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