Inheritance Tax Planning

Key Contact

Hirk Vaughan

Kirk Vaughan
01284 701 300

With ever increasing house prices, Inheritance Tax (IHT) is becoming a real issue for more and more people.

This is further compounded by the fact that the tax free nil rate band has not increased since 2009 and, whilst a widely publicised new ‘main residence nil rate band’ has been introduced to allow wealth of up to £1 million to be free from IHT, this additional tax relief only applies if certain conditions are met. It is recommended that individuals have their positions reviewed to ensure they will qualify for this additional relief.

At Knights Lowe we encourage clients to review their IHT position so that the tax liability can be quantified. This allows practical steps to be taken to mitigate tax liabilities so Estates can be passed down to their family in a tax efficient manner.

Planning in advance is key when considering any tax liability, however, this is even more important when dealing with capital taxes. For example, a number of IHT plans require a 7 year window between making gifts before the value falls out of the taxable Estate. There are still options available if this 7 year window causes difficulties, however, these will depend on the particular circumstances in question.

It is also critical to ensure that Wills are up to date and compliment IHT plans that have been put into place. It is surprising the number of things that can have an impact on how your Estate should be passed on, such as changes within the family like births, deaths, marriages, divorces and birthdays, as well as changes in tax legislation, such as the new main residence nil rate band. Due to this, we recommend Wills should be reviewed every 5 years, although this will vary depending on age, the size of the Estate and changes in circumstances mentioned above.

Knights Lowe are able to assist you with the following:

  • Calculate IHT liability.
  • Determine whether reliefs such as Business Property Relief (BPR) and Agricultural property Relief (APR) can be claimed.
  • Prepare plans to mitigate tax liabilities and maximise reliefs that can be claimed.
  • Review Wills to ensure they agree with your wishes, are tax effective and aligned to IHT plans in place.
  • Advice on taking advantage of current exemptions.
  • Advising on the tax implications of making gifts.
  • Advise on the use of trusts including administration, accounting and taxation.
  • Provide probate and estate administration services such as obtaining grant of probate.

If you would like to find out more about how we can help you, please contact our office on 01284 701 300 and ask to speak to Kirk Vaughan to arrange your free, no obligation meeting.