Inheritance Tax

In the UK, over £5 billion is raised by HMRC through Inheritance Tax each year. The amount of tax to be paid from your estate may depend on how you plan now. Smart decisions taken early can ensure the maximum value of your estate is passed on to family, friends or causes close to your heart, after you are gone.

Getting the right advice is essential when considering Estate and Inheritance Tax planning

How is Inheritance Tax calculated?

Upon death, if your estate is valued at greater than £325,000 you could be liable to pay 40% of its value to HMRC in Inheritance Tax. A value under this threshold attracts a nil rate of tax, meaning no tax is payable to HMRC upon the settling of your estate. 

What is included in Inheritance Tax? 

Your estate is broadly any property, investments, savings, life assurance plans and assets in your ownership when you die. 

Is the value of my house included in Inheritance Tax calculations?

If you pass your home to your spouse or civil partner upon death, the value of the property will not be included. If, however, your home is left to another beneficiary like children or grandchildren it will be included for Inheritance Tax, if it is above the residence nil rate band.   

How can I reduce my Inheritance Tax?

It may be possible to reduce your Inheritance Tax liabilities with the guidance and advice of a tax expert. Simple steps taken early can maximise the value of your estate that is passed to loved ones upon your passing. 

Inheritance tax advisers at Consilium Chartered Accountants will look at: 

  • The current value of your estate and likely inheritance tax liability
  • How property and assets are distributed to upon your death
  • Who the beneficiaries are in terms of property and assets?
  • The tax implications of gifting certain assets or money
  • Whether establishing a family investment company or trusts are suitable options for you
  • Business owner exemptions 

For a confidential discussion about wealth management and Inheritance tax planning, please contact our Tax Partner, Raymond Clarke. Alternatively, learn more about Tax planning or Inheritance tax services from Consilium Chartered Accountants. 

Inheritance Tax planning

Consilium Chartered Accountants can help you protect your estate by minimising tax liabilities and tax-efficient estate planning. 

Consilium’s team of tax experts and estate management advisers can take you through the planning required to minimise Inheritance Tax, Capital Gains Tax and other tax liabilities. 

To arrange a confidential discussion about estate management please contact our Tax Partner, Raymond Clarke. Meetings can be arranged in person or via video call. 

Learn more about Tax planning or Inheritance tax services from Consilium Chartered Accountants. 

Raymond Clarke
Partner
Tax Advisory
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0141 204 6650