Inheritance Tax advisory 

  Brett Estry is a member of the Society of Will Writers and Estate Planners.

   Inheritance Tax is levied on wealth distributed upon death and on gifts made within seven years prior to death.

  IHT is charged at 40% on estates exceeding the £325,000 nil rate band after taking account of any applicable exemptions and reliefs.

  Any unused nil rate band and unused Residential Nil Rate band can be transferred between spouses. Consequently, married couples potentially are able to pass up to £1,000,000 tax-free to their children.

  As an example, a deceased person's estate has a worth of £550,000 after exemptions and reliefs. There is an allowance of £325,000, so £225,000 would be taxable at 40%. As a result £90,000 would be payable to HMRC. It is not hard to understand why people would want to understand the exemptions and reliefs available and to plan to ensure that their estate is passed onto their intended beneficiaries in a tax efficient way. For advice tailored to your particular circumstances, please contact us.