A number of changes to Inheritance Tax (IHT) were announced as part of the Budget measures. We have covered each of the main measures below. It should be noted that these changes are not coming into
Category: Inheritance Tax
UK tax levied on property and money acquired by gift or inheritance (introduced in 1986 to replace capital transfer tax).
Gifts and Inheritance Tax
Most gifts made during a person-s lifetime are not subject to tax at the time of transfer. These gifts, known as "potentially exempt transfers" (PETs), can become fully exempt if the donor
IHT unused Residence Nil Rate Band (RNRB)
The Inheritance Tax Residence Nil Rate Band (RNRB) is a transferable allowance available to married couples and civil partners when their main residence is inherited by direct descendants, such as
What qualifies for IHT Business Relief
There are several types of reliefs from Inheritance Tax (IHT), one of which is IHT Business Relief. This can be a significant tax benefit for those with business interests, potentially offering either
Considering a significant gift?
There are special rules concerning the liability to IHT of a transfer made during one-s lifetime. For example, most gifts made during a person's life are not subject to tax at the time of the gift.
Inheritance and tax
As a general rule, an individual who inherits property, money or shares is not liable to pay tax on the inheritance. This is because any Inheritance Tax (IHT) due should be paid out of the deceased-s
Transferring unused IHT residence nil rate band
The Inheritance Tax residence nil rate band (RNRB) is a transferable allowance for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such
Lifetime transfers and liability to IHT
There are special rules concerning the liability to IHT of a transfer made during a lifetime. For example, most gifts made during a person's life are not subject to tax at the time of the gift. These
Transferring unused nil rate band for IHT
The Inheritance Tax residence nil rate band (RNRB) is a transferable allowance for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such
Transferring IHT unused nil rate band
The Inheritance Tax residence nil rate band (RNRB) is a transferable allowance for married couples and civil partners (per person) when their main residence is passed down to a direct descendent, such
What is a trust?
A trust is an obligation that binds a trustee, an individual or a company, to deal with assets such as land, money and shares which form part of the trust. The person who places assets into a trust is
Giving money to charity in your Will
A reduced rate of Inheritance Tax (IHT) of 36% (reduced from 40%) applies where 10% or more of a deceased-s net estate is left to charity. The lower rate applies where 10% or more of the -net value-
Characteristics of a valid Will
It is important to make a Will to ensure that your estate is divided amongst your beneficiaries in accordance with your wishes. If you do not leave a Will the law decides who inherits the estate. This
Tax on property you inherit
If you inherit property, you are usually not liable to pay tax on the inheritance you receive. This is because any Inheritance Tax (IHT) due should be paid out of the deceased-s estate before any cash
Transfer of unused IHT nil rate band
The Inheritance Tax residence nil rate band (RNRB) is a transferable allowance for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such
Overview of IHT agricultural relief
There are a number of reliefs available that can reduce liability to IHT. Of most interest to farmers is the Agricultural Property Relief (APR). Relief is available at a rate of 100% or 50% depending
The Top 5 Reasons to Register Trusts for Your Assets
If you are looking to protect your assets and minimise your tax liability, you will likely want to register trusts-to hold them. In some cases, you may have to register trusts with HMRC. Trusts offer a range of benefits, from shielding your assets from creditors to providing a clear plan for distributing your wealth after … Continue reading The Top 5 Reasons to Register Trusts for Your Assets
Business Relief for IHT
There are a number of reliefs available that can reduce liability to Inheritance Tax (IHT).
One of these reliefs is known as IHT Business Relief and is a valuable tax relief for taxpayers with
Exempt gifts paid out of income
There is a flexible exemption from IHT for taxpayers who make tax exempt gifts and payments that are paid as normal expenditure out of income. With proper planning this can be a useful tool to enable
Transferring nil rate band for Inheritance Tax
The Inheritance Tax residence nil rate band (RNRB) is a transferable allowance for married couples and civil partners (per person) when their main residence is passed down to a direct descendent such
What is a Declaration of Trust for property?
A Declaration of Trust, also known as a Deed of Trust, is a legal document that outlines the ownership and distribution of assets between two or more parties. Alongside companies and partnerships, trusts are a common way for multiple individuals to jointly own assets. What is a Declaration of Trust? A Declaration of Trust is … Continue reading What is a Declaration of Trust for property?
Valuing an estate for IHT purposes
Inheritance Tax (IHT) is levied on a person-s estate when they die and can also be payable during a person-s lifetime on certain trusts and gifts. The rate of Inheritance Tax payable is 40% on death
Making a claim on an unclaimed estate
There are special intestacy rules that govern how assets are divided if you die without making a will. If this happens your assets are passed on to family members in accordance with a set legal
Have you utilised 2022-23 IHT allowances and reliefs?
We wanted to remind you of the Inheritance Tax (IHT) implications of making cash gifts during the current tax 2022-23 tax year that will end on 5 April 2023.
You can give away up to -3,000 worth of
Exempt transfers between siblings
Inheritance Tax (IHT) is levied on a person-s estate when they die and can also be payable during a person-s lifetime on certain trusts and gifts. The current IHT nil rate band is -325,000 per person,
IHT - estimating an estate-s value
Inheritance Tax (IHT) is levied on a person-s estate when they die and can also be payable during a person-s lifetime on certain trusts and gifts. The rate of Inheritance Tax payable is 40% on death
Save on Taxes: Exemptions in the UK
Tax exemptions, also referred to as Tax allowance or tax relief in the UK, is the amount of money you can claim without having to pay tax on it. There are a few different benefits and expenses that will allow you to claim tax exemption. These are mainly divided into two sections namely: private tax … Continue reading Save on Taxes: Exemptions in the UK
Tax on property you inherit
If you inherit property, you are usually not liable to pay tax on the inheritance. This is because any Inheritance Tax (IHT) due should be paid out of the deceased-s estate before any cash or assets
Gifts paid out of disposable income
It is possible for wealthier taxpayers to make tax exempt gifts and payments that are funded as normal expenditure out of income. This is a very flexible exemption from IHT as there are no specific
Gifts paid out of disposable income
It is possible for wealthier taxpayers to make tax exempt gifts and payments that are funded as normal expenditure out of income. This is a very flexible exemption from IHT as there are no specific