Inheritance Tax Planning

The Financial Management Centre offers an inheritance taxation (IHT) mitigation advisory services. This service is offered to both businesses and individuals alike. Like capital gains tax, IHT is a voluntary tax payable by all UK citizens and businesses. IHT is paid by beneficiaries of a will or under the rules of intestacy upon a donor’s death. IHT is charged at a rate of 40%. IHT thus significantly reduces the wealth you may pass on to your heirs upon your death. The Financial Management Centre’s advisory service attempts to minimise the amount of IHT you pay to HMRC, thus safeguarding your heirs’ legacy.

The nil-band rate and when IHT becomes due

IHT is applies not only to your estate distributed upon your death, but also against the value of any gifts you have made in the prior seven years before your death under the ‘seven year rule’.

Fortunately the law affords beneficiaries a ‘nil-band’ rate. If assets are valued at or below this rate, no IHT is payable. The ‘nil-band’ rate current stands at £325,000 for individuals and £650,000 for married couples and those in a civil partnership (2015). IHT is chargeable on estates worth over and above this rate.

Typical assets attracting IHT

Assets commonly pushing an estate over this nil-band rate include:

• Family home
• Savings
• Car and other vehicles
• Jewellery
• Investments
• Payments made through life insurance

IHT is also charged against gifts over the value of £3000 if received within seven years before the donor of the gift has died. Gifts made with seven years before the donor’s death will count towards the ‘nil-band’ rate explained above.

How we can help

The aim of our IHT advisory service is to mitigate the amount of taxation due upon your death. When you engage this service an advisor carries out a full review of your specific circumstances. Your advisor calculates your current exposure to IHT based on information you supply. Finally your advisor draws up a long and short-term IHT mitigation strategies on your behalf. This strategy requires continuous revision as you gain and sell off assets in the years before your death.

Contacting The Financial Management Centre

Ensure you pay your IHT tax bill correctly by engaging The Financial Management Centre’s advice. Complete the enquiry form or find the location of your nearest branch.