“The only
two certainties in life are death and taxes” – Benjamin Franklin
Inheritance
Tax (IHT) is usually payable on an Estate in the event of someone’s death. The
current IHT threshold, also known as the 'Nil rate band', stands at £325,000.
If your overall Estate is above this level, any excess amount will be taxed at
40% (although there are some exceptions in respect of charities etc).
Since
October 2007, any late spouse’s or civil partner’s unused nil rate band can be transferred
to the second spouse or civil partner when they die. This will mean that
currently on second death the IHT threshold will be £650,000.
Example – Husband & Wife
Example – Husband & Wife
Private
property
|
£600,000
|
Bank
accounts
|
£50,000
|
Investments
(incl. ISAs)
|
£200,000
|
Other
assets (e.g. cars)
|
£25,000
|
Total
assets
|
£875,000
|
Combined
Nil rate bands
|
£650,000
|
Liable to
IHT
|
£225,000
|
Taxed at 40%
|
£90,000 tax liability to pay
|
To find out
how to reduce your potential IHT liability, Ward Williams Financial Services Ltd will be holding a free seminar on Thursday 7th
March 2013 at Wentworth Golf Club
– if you would like to attend please telephone
us on 01344 624114 and speak to
Clare, Hannah or Guy to reserve a place.
If you are unable to make this date but would
like to know more, please call us to book an appointment or have an informal
discussion with one of our highly qualified financial planners. www.wardwilliamsfs.co.uk
Ward Williams Financial
Services Ltd is authorised and regulated by the Financial Services Authority.
The Financial Services Authority does not regulate taxation advice.
The Financial Services Authority does not regulate taxation advice.
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