Inheritance Tax Planning

In 1986 the Finance Act introduced IHT to replace Capital Transfer Tax known as the Inheritance Tax Act 1984. What must be understood is that the IHT is cumulative, so it remains chargeable for a period of time usually 7 years.

Inheritance Tax, (IHT) is a voluntary tax that’s become very complex in calculating due to pre budget announcements but subject to the finance act obtaining Royal ascent, ( usually by August 1st ).  Its basically a 40% tax to be paid by the estate of the deceased having removed any allowances, at the moment we are allowed in the United Kingdom a married allowance or (civil partnership allowance) which within England and Wales transfers a nil rate band. This however is also subject to change and has become since October 2007 very complex as many people are misguided assuming no tax is due. Estates transfers are calculated due to previous marriages, assets held in trust or transferred but allowances are taken into the calculation so if a transfer has been made previously it may (or not as the case may be) allowed as tax free.

There are still planning opportunities open to you, which we can discuss at the time of meeting to protect loved ones, and businesses, from suffering this tax. Best advice is plan ahead.

We suggest that you look at our links page under (Kings Court Trust) to get accurate up to date tax calculations and advice.