Inheritance Tax Solicitors
When you die, the Government assesses how much your estate is worth, then deducts your debts from this to give the value of your estate. Your assets include:
- Cash in the bank
- Any property or business you own
- Payouts from life insurance policies
You have already paid tax on your earnings and investments, vehicle and business. We are here to advise of the simple actions you can.
Briefly your estate will owe tax at 40% on anything above the £325,000 tax threshold when you die.
Simple actions can save you thousands of Pounds, and we are here to provide you the advice you need, from a canny Yorkshireman.
The BIG question… how much tax do you pay?
Your estate will owe tax at 40% on anything above the £325,000 inheritance tax threshold when you die (or 36% if you leave at least 10% to a charity).
Dealing with it is one of the biggest single things you can do, as some simple actions can save you £100,000s. Yet sadly many people ignore it, either not wanting to consider the future or simply unable to broach it with relatives for fear of seeming grasping.
In the 2015/16 tax year, everyone is allowed to leave an estate valued at up to a £325,000 without their beneficiaries paying tax on it. The amount is set by the Government and is called the nil-rate band, because it’s the amount you pay a ‘nil-rate’ of IHT on.
Above that amount, anything you leave behind is subject to tax of 40% (or 36% if you leave at least 10% of your assets to a charity).
So for example, if you leave behind assets worth £500,000, your estate pays nothing on the first £325,000, and 40% on the remaining £175,000 – a total of £70,000 in tax – if you’re not leaving anything to charity.
Officially, the £325,000 limit has been frozen until at least 2017/18,