What is Inheritance Tax Planning?

Inheritance Tax is now not just a concern of the wealthy, with the IHT threshold currently at £300,000.00 and the average house in the UK valued at around £211,000.00 this is rapidly becoming an issue for the majority. Tax is charged at 40% of the value of your estate over the £300,000 threshold when you die. Your estate includes everything owned in your own name or a share of anything owned jointly minus any outstanding debts such as mortgage, unpaid bills etc as well as funeral expenses. Inheritance tax is proving to be a big money spinner for the revenue if you would like to avoid this final tax on your wealth then organising your finances now may save your dependants some of your wealth.

Top Tips:

  1. Seek professional advice. This is an area not to be taken lightly.
  2. In most cases tax has to be paid within six months from the end of the month in which death occurred.
  3. Married couples both have an IHT allowance ensure this utilised.
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