- Assets in excess of £325,0001 could be
liable to Inheritance Tax
- Inheritance tax is payable at a rate of
up to 40%
- Giving away your assets before you die
may not avoid Inheritance Tax
- For most UK residents this includes UK
and overseas assets
- Gifting your house while still living
there will not normally avoid an IHT charge
- The Government collects billions of
pounds each year in
Inheritance Tax
1 This is the Nil Rate Band that applies to the 2009/2010 tax year
Despite the fact that inheritance tax is payable on death, it is
viewed by many as a voluntary tax. With professional financial planning and an effective Will your Inheritance
Tax liability can be
legally reduced or even avoided altogether.
Planning in advance is important for many
reasons - in particular gifts to individuals or certain types of
trust still retain a possible
liability for seven years. It may also be important to take
steps while you are in good health.
With good financial advice AND planning ahead, there are a number of ways to reduce your
Inheritance Tax liability, such as:-
- Using trusts
- Ensuring you have a suitable will in
place
- Making use of all the available
allowances and exemptions
- Gifting assets and surviving for seven
years
- Using Tax efficient investments
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