Fenn & Co - Inheritance Tax

Accountants, Tax Advisers And Business Consultants

INHERITANCE TAX

Inheritance tax (IHT) is levied on a person’s estate when they die, and certain gifts made during an individual’s lifetime. Most gifts made more than seven years before death will escape tax. Therefore, if you plan in advance, gifts can be made tax-free - The result can be a substantial tax saving.

There are also a variety of reliefs and exemptions which can be possibly be used and planned for when an IHT liability potentially arises.

It is however important for you to seek specific professional advice appropriate to your personal circumstances. Whilst some generalisations can be made about IHT planning it is always necessary to tailor the strategy to fit your situation.

However there can be scope for substantial savings which may be missed unless professional advice is sought as to the appropriate course of action.

Much estate planning involves making lifetime transfers to utilise exemptions and reliefs or to benefit from a lower rate of tax on lifetime transfers.

However careful consideration needs to be given to other factors. For example:-

A gift that saves IHT may unnecessarily create a capital gains tax (CGT) liability, or

The prospect of saving IHT should not be allowed to jeopardise the financial security of those involved

We would welcome the opportunity to assist you in formulating a strategy suitable for your own requirements.

And of course we can carry out the necessary work and documentation when required.

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