WHAT IS INHERITANCE TAX PLANNING?
If you have assets over £325,000, for a single person or £650,000 for a married couple or civil partnership, the amount above this level will be subject to tax at a rate of 40%. By planning correctly the level of tax could be significantly reduced or even removed altogether. Inheritance tax planning is all about passing on your assets to your beneficiaries in the most tax efficient way.
To relieve you and your family of this burden you can start by giving away larger gifts, making small annual payments within certain limits, using spousal allowances, taking out life assurance written under an suitable trust or using a tax scheme to fund the liability. However, it is important to understand the limitations and risks of doing so e.g. 7 year rule, which is why it is important to take financial advice before you do so.
Please contact Finn Associates for a no obligation meeting, to discuss IHT liabilites and potential ways to reduce them