Inheritance Tax Advice from Dual-Qualified, Regulated Solicitors

Inheritance tax is usually paid by the estate, not the beneficiaries. It applies when the total value of the estate exceeds the current threshold (£325,000 for most individuals in the UK, with additional allowances for a spouse, civil partner or home).

Executors are responsible for ensuring the payment is made to HMRC.

All assets involved in the estate are considered when calculating inheritance tax.

Common assets include:

• Property

• Bank accounts

• Investments & binds

• Gifts made before death

Some assets, like jointly owned property or those in certain trusts, may be treated differently.

Yes.

A qualified probate or estate planning solicitor can help you understand your tax implications, prepare legal documents, and ensure your estate and any trusts are properly set up to comply with the law and minimise IHT liability.

There are several strategies that your solicitor can put in place to reduce inheritance tax.

• Making gifts during your lifetime - you can gift £3,000 worth of gifts each tax year tax-free. Potentially Exempt Transfers also become exempt if you survive seven years.

• Setting up trusts

• Leaving money to charity - charitable gifts reduce the Inheritance Tax rate from 40% to 36% if at least 10% of the estate is left to charity.

• Fully utilising the tax-free allowances available

Jones Whyte have years of experience handling all types of inheritance tax strategies.

There are several exemptions that permit you to make tax-free gifts during your lifetime. These include annual allowances and specific exemptions for certain occasions. Additionally, some gifts may become exempt over time. If you would like to find out more, contact our inheritance tax specialists.