Inheritance Tax: With IHT, planning is key.

Whether it’s called Estate Duty, Capital Transfer Tax or now Inheritance Tax (IHT) death duties have been around for centuries.

The purpose of these taxes has always been the same. To raise revenue for the Chancellor.

Initially, the tax was aimed at only the very rich but over the years the bar has lowered with more people than ever before becoming liable. Your tax liability is based on the value of your estate. The estate is made up of all your assets which includes the family home, investments including Individual Savings Accounts (ISA’s) and life assurance policies not in trust. Also, you could be caught out with rising property prices increasing the value of your estate.

Residential nil rate band.

IHT planning is key. Currently, we all have a nil-rate band of £325,000 which has been announced to remain the same until April2031 tax year. This has remained unchanged since 2009.  This means that the first £325,000 of your estate will be free of inheritance tax. The entire estate, above the nil-rate band, is taxed at a flat rate of 40% assuming no charitable donations have been made. In addition, an additional nil-rate band will come into force when a residence is passed on death to a direct descendant. This is currently £175,000 and is also frozen until April 2031.

Additionally, any unused nil-rate band will be able to be transferred to a surviving spouse or civil partner up to £1 million without IHT liability.

The nil rate band is just one of the tools that can be used to help you plan your estate. Looking at Wills, Gifts, Trusts and Insurance also plays a role.

How Anstee & Co. can help you with Inheritance Tax planning.

We are Independent Financial Advisers (IFA’s). This means that we offer unbiased financial advice. We look at all the IHT planning options for you from the “whole of market”. Our team of financial planners will be able to help you draw up a plan that is right for you.

Our Head Office is located at –

• Kettering, Northamptonshire

Additionally, our financial planners live and make use of meeting rooms in-

• Bedford, Bedfordshire
• Market Harborough, Leicestershire
• Northampton, Thrapston and Wellingborough in Northamptonshire.

We would welcome the opportunity to have a coffee with you and discuss how we can provide the advice and help you require. The initial “getting to know you” meeting is at our expense and is without obligation. Why not contact us today.

If you would prefer, meetings can also be arranged, making use of video conferencing facilities such as-

• Zoom
• Microsoft Teams
• Facetime

There is no need to visit an office as all work can be handled remotely. Also, all meetings can be arranged at a time and in a way that is convenient for you.

If you have any thoughts or comments on this article, “Inheritance Tax: With IHT, planning is key.”, then we would love to hear from you.

Finally, the information contained in this article is for information purposes only and does not constitute financial advice. No action should be taken based on this information alone. Anstee & Co. is authorised and regulated by the Financial Conduct Authority (FCA).