Estate taxation, often referred to as inheritance tax (IHT) in the UK, is a tax on the estate of someone who has passed away. This includes property, savings, investments, and other assets. Proper estate planning is essential to minimise tax liability, allowing you to maximise the inheritance passed on to your loved ones.
In the UK, inheritance tax is charged at a rate of 40% on the value of an estate above the £325,000 threshold (also known as the nil-rate band). However, there are ways to reduce the tax owed:
Effective estate planning offers strategies to reduce inheritance tax and preserve more of your estate for future generations. Key options include:
Our Estate Taxation Services
Our team of estate taxation specialists can guide you in developing a tax-efficient plan for your estate. We work closely with you to understand your goals, review your assets, and create tailored solutions that balance your wishes with optimal tax benefits.
Start Planning for a Tax-Efficient Estate
Estate taxation doesn’t have to be overwhelming. By planning ahead, you can protect your legacy, minimise taxes, and provide your family with the security they deserve. Contact us today to learn more about how we can help you create a tax-efficient estate plan.
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Our team comprises experienced tax professionals who specialise in estate taxation. They possess in-depth knowledge of UK tax laws and stay updated with the latest regulations, ensuring that your estate receives the most effective tax planning and minimisation strategies.
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We offer a comprehensive suite of estate taxation services, including inheritance tax planning, capital gains tax management, and trust and gift tax planning. Our holistic approach covers all aspects of estate taxation, providing you with a one-stop solution for your tax needs.
We offer a comprehensive suite of estate taxation services, including inheritance tax planning, capital gains tax management, and trust and gift tax planning. Our holistic approach covers all aspects of estate taxation, providing you with a one-stop solution for your tax needs.
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We recognise that every estate is unique. Our team takes a personalised approach, tailoring tax strategies to your specific financial situation and estate planning goals. Our goal is to maximise tax efficiency and protect your wealth while ensuring it aligns with your overall financial plan.
We recognise that every estate is unique. Our team takes a personalised approach, tailoring tax strategies to your specific financial situation and estate planning goals. Our goal is to maximise tax efficiency and protect your wealth while ensuring it aligns with your overall financial plan.
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Inheritance tax (IHT) is a tax on the estate of a person who has died, including property, savings, and other assets. In the UK, estates worth over £325,000 are taxed at 40% on the amount above this threshold, though there are ways to reduce the taxable amount through exemptions and reliefs.
The nil-rate band is the tax-free threshold, currently set at £325,000 in the UK. Any estate value within this limit is exempt from inheritance tax. Additional allowances, such as the residence nil-rate band, may apply if you leave your home to direct descendants, potentially increasing your tax-free threshold.
The residence nil-rate band (RNRB) provides an additional tax-free allowance if you pass on your home to children or grandchildren. This allowance can increase the tax-free threshold, helping to reduce the overall inheritance tax on your estate.
No, assets left to a spouse or civil partner are generally exempt from inheritance tax. This allows you to transfer your estate to your spouse tax-free, which can also increase their tax-free allowance upon their passing.
Yes, leaving a portion of your estate to a registered charity can lower the inheritance tax rate on the rest of your estate from 40% to 36%. This option provides tax benefits while supporting causes you care about.
Trusts allow you to set aside assets separately from your estate, which can reduce inheritance tax liability. Trusts are particularly useful for providing for children, grandchildren, or vulnerable beneficiaries while keeping assets protected from immediate taxation.
Lifetime gifting involves passing on assets during your lifetime. Gifts made more than seven years before your death are usually exempt from inheritance tax, helping to reduce the value of your estate and the tax burden for your beneficiaries.
Yes, Business Property Relief (BPR) allows certain business assets to be passed on with reduced or no inheritance tax. This relief can be particularly valuable for business owners looking to keep their business in the family or pass it to specific beneficiaries.
Without tax planning, your estate may face a higher tax burden, reducing the amount passed on to your beneficiaries. Inheritance tax can impact your family’s financial security, so planning can help preserve more of your estate.
It’s a good idea to review your estate plan every few years or after major life events, such as marriage, the birth of a child, or significant changes in financial circumstances. Regular reviews help ensure your plan remains tax-efficient and aligned with your goals.
Costs vary depending on the complexity of your estate and the strategies involved. Basic planning may be relatively straightforward, but more complex arrangements, like setting up trusts or managing business assets, may require more extensive planning.
The first step is to consult with an estate tax professional to discuss your goals, review your assets, and identify potential tax-saving opportunities. A professional can guide you through creating a tailored plan that balances your wishes with tax efficiency.
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