Inheritance Tax is liable, on property, investments and savings over the tax-free allowance of £325,000; it can be reduced through careful estate planning.
An estate including property, investments and savings over £325,000 is taxed at 40%. There is no inheritance tax to be paid on property or money that is left to a husband or wife, or civil partner or charity.
A recent change to the law now means that the firsst spouse or civil partners allowance of £325,000 can be transferred or added to the allowance of the remaining spouse or partner, making a total allowance before tax of £650,000. However, this double allowance is not automatically assumed and would need to be applied for correctly.
At Keoghs, Nicholls, Lindsell and Harris, we can explain to you the benefits but also potential issues that may arise, in order that you achieve a plan for you and your loved ones.