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Inheritance tax planning

Are you liable to Inheritance Tax?

The first £312,000 (2008 / 2009) of an individual's estate is taxed at 0% and is therefore not liable to Inheritance Tax. For married couples and registered civil partners it is currently £624,000, if the full allowance is passed to the surviving spouse.
Anything in excess of this amount is taxed at 40% on death.

The following courses of action can mitigate Inheritance Tax:

Ensure your Will is written and planned correctly to save the maximum amount of tax

Transfer assets through the prudent use of lifetime gifts

Create a tax-efficient fund to enable the beneficiaries of an estate to meet the tax liability without disturbing the family wealth. Under current IHT legislation, pensions can play a considerable role in estate planning.

Having sufficient retirement income may release capital for lifetime giving.

Although pension death benefits are broadly exempt from IHT, if they are passed to your survivor they will form part of their estate.

Wills

By failing to arranging a Will this could mean the deceased person's assets are passed to the 'wrong' people. Alternatively and in addition the value of their estates could become subject to unnecessary Inheritance Tax.

Should you die without having drafting a valid Will you are considered to have died 'intestate'. In this situation the law lays down a standard set of rules for the distribution of your assets.

Dying intestate can be very complicated, particularly when the deceased person has children.

A Will can be prepared in a matter of hours typically costing around £100.
The potential savings from this initial outlay could be very significant.

Should you need assistance please contact us and we can help you further.



















The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK.

The Financial Services Authority does not regulate taxation advice, will writing, debt consolidation, business risk and some forms of savings and mortgages.

Oyster Independent Financial Advisers Limited's registered address is: Media House 63 Wostenholm Road Nether Edge Sheffield S7 1LE. Registered in England: 583115

Oyster Independent Financial Advisers Limited is authorised and regulated by the The Financial Services Authority. The Financial Services Authority does not regulate taxation and trust advice and personal finance.

Oyster Independent Financial Advisers Limited is entered in the Financial Services Authority register and the registration number is 453876. www.fsa.gov.uk/register

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The tax relief's referred to throughout this Internet site are those currently applying in the United Kingdom to UK Tax Residents. These tax reliefs are liable to change. The value of any tax relief available will depend upon the individual circumstances of the taxpayer.