You have built up an estate over a lifetime despite having had to pay Income Tax, Capital Gains Tax and other forms of tax along the way. And before you can pass this wealth on to your heirs, you face a final tax bill – Inheritance Tax.
It may seem unfair that you, or rather your family, are then taxed again on those accumulated assets on death. Nevertheless, this “double” taxation exists and dates back to the introduction at the end of the last century to what might generically be called death duties. Currently, the tax applies to all estates over £300,000 in value and is levied at 40%.
Of course, Inheritance Tax (IHT) is something of a political tax and there is no guarantee that the current rules will not be tightened, the tax rate increased and planning opportunities reduced.
Inheritance Tax can have disastrous consequences for families and lead to a very substantial part of a person’s estate being paid to HM Revenue and Customs. Worst of all, IHT could create financial problems and anxiety for your family at what is undoubtedly a very difficult time anyway.
We believe there is considerable scope for mitigating the potential IHT charge. Specialist advice and sensible tax planning can reduce, if not eliminate the tax burden and lessen the difficulties the liability might otherwise cause.
Contact us to see how we can help you.