At Gorvins, we’re encouraging you to plan ahead to help reduce your inheritance tax (IHT) bill.
The latest figures from HMRC show that inheritance tax receipts have risen by 7.2% since last year. By taking advantage of available tax reliefs and planning carefully, you can make sure your loved ones pay the smallest tax bill possible and get the most out of what they inherit.
The Association of Lifetime Lawyers
The Association of Lifetime Lawyers represents a community of the most qualified legal professionals in the UK supporting vulnerable and older people with expert advice and support.
As members of the Association of Lifetime Lawyers, we want to let you know there are precautionary steps to take if you plan for family members to inherit part, or all of your estate upon your passing.
Nil rate balance
With more estates than ever liable for inheritance tax, it’s crucial to plan ahead to avoid a large tax bill for your loved ones. If the value of your estate is below the current nil rate band allowance of £325,000, no inheritance tax (IHT) is owed, provided the allowance hasn’t been reduced by relevant lifetime gifts.
Rules for married couples
For married couples or civil partners who leave their entire estate to each other, HMRC permits the full transfer of the nil rate band to the surviving partner, effectively doubling the allowance to £650,000. Even if only a part of the estate goes to the spouse, the unused portion of the nil rate band can still be transferred upon the death of the second spouse.
Estates that include businesses and related assets
If your estate includes a business or related assets, additional reliefs currently apply at rates of either 50% or 100%. Likewise, certain agricultural properties, such as land used for rearing animals or growing crops, can pass free of IHT, provided specific criteria are met.”
The importance of creating a will
Creating a will is essential to ensure your assets are distributed to your chosen beneficiaries. Without a valid will, your estate will be divided according to the intestacy rules, which may result in your family not receiving what you intended. Research from The Association of Lifetime Lawyers shows nearly half of UK adults (49%) do not have a will. It’s important to consult a legal professional to help you draft a will.
Keep an eye out for changes
Given the recent change in government, we’d recommend keeping an eye out for any potential policy changes and speak with a Lifetime Lawyer to help minimise your tax bill.
If you’re looking for help creating a will or support with your inheritance matter, Gorvins expert team of solicitors are on hand to help. Call us on 0161 930 5151, email us at Enquiries@gorvins.com or fill in the online form.