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Capital Gains and Inheritance Tax

Reasons to choose Wilson Browne

  • Life Interest Trust from £395 ex-VAT
  • Complex Trust from £492
  • Direct access to your legal team
  • Transparent costs

Inheritance Tax (IHT) is no longer the preserve simply of the rich and famous…

More and more people are finding themselves within the threshold IHT applies.

To establish whether or not IHT is applicable in your circumstances, you need to aggregate every asset in your estate to include bank accounts/ building society accounts, savings, investments, properties, insurance policies, shares and any other assets of value.

You will also need to consider whether you have made any:

  1. PETs (Potentially Exempt Transfers)? PETs are gifts made within 7 years of your death and will be included as part of your estate when determining IHT.
  2. GROBs (Gift with a Reservation of Benefit). If so, these will also be considered when determining IHT.

If the value of your estate exceeds the Nil Rate Band (£325,000) you may find you are liable to Inheritance Tax that is currently charged at 40%.

Taking legal advice to prepare your Will is a good opportunity to ask for advice generally regarding mitigating your Inheritance Tax liability.

We can advise you on:

  • Any available Allowances
  • Whether you are entitled to claim the transferrable Nil Rate Band (NRB) which may potentially increase the NRB from £325,000 to £650,000
  • Tapering Relief
  • Making efficient Lifetime gifts/outright gifts
  • Creating a Trust, etc

With experts in our offices in Northampton, Kettering, Corby, Higham Ferrers, Wellingborough and Leicester we’re happy to talk.

An initial call cost nothing and could ensure that your assets are protected and as tax efficient as possible, call us today.

Top ten ways to reduce you IHT bill

  1. Update your Will to ensure you’re making full use of the Nil rate band, residence nil rate band business property relief and agricultural property relief
  2. Appoint an independent financial adviser/wealth manager to discuss with you lifetime planning
  3. Consider leaving a legacy or percentage of your estate to charity – charities are exempt from inheritance tax and if you leave more than 10% of your estate to charity you may be eligible to a rate of inheritance tax at 36% instead of 40%.
  4. Consider setting up lifetime trusts to reduce the size of your estate.
  5. Consider making gifts to your friends or family members to reduce the size of your estate
  6. Take advantage of your annual exemption on gifts of £3,000 per year
  7. Take advantage of the exemption to make regular gifts out of income – the gifts can be of any size providing they are regular e.g monthly, annually, quarterly and are out of your disposable income
  8. Take advantage of the small gifts relief of £250 per person per year – this can be to any number of people
  9. Set up a Nil Rate Band Discretionary Trust under the terms of your Will to take the growth of your assets outside your estate after the first death
  10. Consider post death variations on estates you have inherited from