rda - taxplanning - inheritance tax


			Inheritance Tax Inheritance Tax (IHT) is the tax ‘your estate' pays when you die, although it can also be charged on certain lifetime gifts. However, Inheritance Tax is not just a concern for the wealthy. It is a growing worry for many people – but unlike many other taxes, there are plenty of things you can do now to make sure you pass as much of your wealth on to your family and friends as possible, rather than to the taxman. Fairly modest estates can be hit by Inheritance Tax. In the 2008–2009 tax year, only individual estates worth less than the £312,000 threshold will escape the Inheritance Tax net. This might seem a lot of money, but really it's little more than the cost of an average home in the Home Counties. If your individual estate is over £312,000, therefore, subject to certain other exemptions and reliefs, it bears Inheritance Tax at 40% on the excess. Any unused allowance can now be transferred from a deceased spouse or civil partner.
			So unless you plan carefully then it is possible that your estate too will be hit by Inheritance Tax. It may seem very unfair that even after death, we are still pursued by the taxman. But plan now and you could cut the amount of inheritance tax your estate has to pay – meaning there will be more to pass on to your family and friends. Contact us today The FSA does not regulate tax advice.

Inheritance Tax