The UK tax regime becomes more complicated every year and specialist advice in this area is now more important than ever.
Although tax liabilities can be a significant factor in planning for future provision it is important to place tax planning in context. Family wealth planning must start with consideration of your intended goals, future needs and security and we can help you to balance these issues with the likely tax liabilities. The two key taxes with which we are involved are:
Inheritance Tax is payable when you die if the value of your estate exceeds the inheritance tax threshold. For Inheritance Tax purposes, your estate can include the value of gifts made within seven years before death and any interest you may have in particular trusts.
Inheritance Tax is payable at 40% on any excess over the ‘nil rate band’ threshold at the date of your death. The current ‘nil rate band’ is only £325,000 per person which allows most couples to pass down £650,000 of value without any charge to Inheritance Tax. There are many important additional allowances, reliefs and exemptions which can be claimed and proper use of these is at the core of our tax planning service.
We have significant experience in helping clients to reduce or eliminate Inheritance Tax liabilities including applications to the Court of Protection to achieve planning schemes for clients who lack the capacity to make their own arrangements.
Capital Gains Tax
Inheritance Tax cannot be dealt with in isolation and consideration must be given to other taxes such as Capital Gains Tax which may become payable upon any sale or gift of assets. We can help you to make the best use of the Capital Gains Tax regime, including advice on such matters as entrepreneurs relief for business assets, principal private residence relief and second homes and the use of trusts and trust creation.