Inheritance Tax

Establishing your IHT bill will help you work out what to do

Work out the value of your estate.

To work out the value of your estate, add up:

  • Any gifts you made in the last seven years that attract IHT (taxable lifetime gifts and any potentially exempt transfers)
  • Your property (including property abroad), cash belongings, savings and investmentsand life insurance paid to your estate on your death that’s not written under trust. Include your share of anything you own jointly.
  • Gifts you’ve made where you’ve retained some benefit – for example, a house you have given to someone but still live in.
  • Assets held in certain types of trust from which you get some benefit – an income, say.

After that, subtract the value of:

  • Your debts (such as a mortgage) and reasonable funeral expenses
  • Gifts that are exempt from inheritance tax (7 Year Rule)

What you pay

If the total is below the tax-free allowance (currently £325,000 for a single person or up to £650,000 for married couples, civil partners and most widows, widowers and surviving partners of a civil partnership), there’s no IHT to pay. If it is above the allowance, the excess is currently taxed at 40% when you die.

Needless to say this can be a complicated area of Financial Planning and it is recommended that you seek professional advice.


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Inheritance Tax

Needless to say this can be a complicated area of Financial Planning and it is recommended that you seek professional advice

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Investments

It is very important to know that any investment is right for you in terms of risk and tax position.

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Protection

We give a straightforward service supported by dedicated and robust underwriting. We’re always on hand to answer any questions you may have

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