• Home
• About Us
• Contact Us
• Book Appointment
• Will Writing
  • Storage
• Legal Service
• Estate Planning
  • Trusts
  • Long Term Care
  • Inheritance Tax
  • Power of Attorney
• Company Workshops
• Associate Recruitment

Inheritance Tax

IHT is based on the value of your estate when you die less any liabilities and is levied at everyone who leaves assets. This could be property, savings or investments.

However there are tax free allowances which are known as the “nil rate bands” on which no IHT is paid. Since October 9th 2007 there have been changes by the Government which affect married couples & civil registered partners. They may now transfer allowances and have the benefit of up to £600,000 before paying IHT.

A couple leaving an estate valued at £700,000 upon the death of the remaining spouse would still have an IHT liability of £40,000. However with some careful estate planning they may be able to reduce this liability.

These rule changes also have benefits to those who were widowed before 9th October 2007

However, if you are single or live with a partner that is not a legal “Civil Partnership” your allowances are lower and you are unable to transfer allowances. The changes in tax rates normally change with the new tax year which is April. So from April 6th 2008 the “nil rate bands” for single people are as follows:

April 2008    £312,000
April 2009    £325,000
April 2010    £350,000        

On your estate anything above these 'nil rate bands' you will be paying 40% IHT.

Example: In 2009 if your estate is valued at £425K there would be an IHT bill of £40K.

April 2008*

IHT is one of the most reviled taxes in Britain. Anyone who wants to protect their assets for their children and family need to consider some careful estate planning.  South West Wills & Trust will offer advice to help you with the planning of your estate and how you can possibly reduce your IHT liability.

Call today to make your appointment so that we can discus how we may help you with your estate planning; we can call at your home or place of work. Tel 01297-551323