Inheritance Tax is a tax on the estate (the property, money and possessions) of someone who’s died.
Married couples can, with proper planning, pass on up to £1m tax free, but many with personal wealth above this amount are voluntarily paying over the odds by failing to make good decisions and missing out on the various tax breaks on offer. Estates worth more than the £1m pay three-quarters of all death duties, a collective tax bill of more than £5bn a year.
Recently, there has been a huge increase in the number of families paying 40% inheritance tax on their loved ones’ estates. This means over £1 billion pounds passes unnecessarily to HMRC rather than to the deceased’s own relatives.
What most people do not know is that there are simple ways of reducing this extortionate charge.
HM Revenue & Customs have confirmed that in 2017-18 almost half of the money that was tied up in inheritance tax-paying estates was invested in shares or held in cash. This amounts to around £1.2 billion pounds. This money could have been better placed into tax-saving schemes or gifted away tax-free.
At Cheyney Goulding our specialist solicitors understand that the subject of inheritance tax and any attempt to reduce the same can be a minefield. This is why we are on hand to assist you in reducing any inheritance tax bill by providing practical solutions to this increasingly common issue. To give you but a few examples we can explore the following with you:
- Simple Will planning
- Marital status and the impact this may have on any future tax payable.
- Use of uncomplicated Trusts
- Gifts in general
- Charitable donations
There are of course other options available to you and we would be delighted to discuss these in more detail going forwards.
Don’t leave your hard-earned money to the taxman, leave it to your family.
If you would like to know more about inheritance tax and the various tax-saving schemes, please do not hesitate to contact Christopher Seddon, who is the head of our Private Client Team, or Jo Purse, one of our Private Client Solicitors, for guidance and an initial free telephone consultation.