Inheritance Tax

What is it?
A tax on your personal wealth having spent a lifetime building it up. It therefore makes sense to protect your wealth. Inheritance tax (IHT) may lead to the HM Revenue & Customs receiving more than each individual beneficiary and reduces the value of the estate.

Who needs to protect against it?
Anybody whose estate is valued at more than £300,000 (2007/2008 tax year) is affected by Inheritance Tax. Given the escalating value of property prices in the UK it is affecting more and more people.

How do you calculate it?
A valuation of the entire estate, including insurance and pension benefits, needs to be undertaken to enable a calculation of the cost of potential taxation

What else do I need to know?
Planning to ease the burden of inheritance tax can be as simple as ensuring wills are correctly drafted through to making trust and insurance arrangements. The current taxation climate offers many ways of mitigating potential inheritance tax problems.

HM Revenue & Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.

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