Nothing is certain but death and taxes
It’s not only the super-rich that are subject to inheritance tax
Benjamin Franklin once said that “nothing is certain but death and taxes,” and thanks to inheritance tax (IHT), they’re not only certain they’re intrinsically linked.
IHT is currently charged at 40 per cent, and is payable on your estate once your net assets exceed, in the current 2008/09 tax-year, £312,000 or £624,000 for a couple who are married or in a civil partnership.
Once only the domain of the super-rich, wide scale home ownership and rising property values have meant that more and more people may become subjected to IHT every year.
To reduce your exposure to a potential IHT liability, assets can be given away under either of the following:
* Annually within an allowance or from excess income
* As philanthropic gifts
* More than seven years before your death
However, there are other ways that you can alleviate the burden of IHT when passing on your wealth to your children and grandchildren. Talk to us about how we could help reduce or eliminate a potential IHT liability.
Wills
By drawing up a will, you can ensure that your wealth is distributed according to your wishes and this creates the foundation for your IHT reduction strategy.
Gifts
When you’re looking to reduce your taxable estate, the first thing you should consider is whether you can afford to distribute any of your assets before you die in the form of gifts.
The Alternative Investment Market (AIM) and OFEX
AIM and OFEX shares could also offer you an IHT shelter, as well as a means of reducing capital gains tax.
To find out more about IHT please vistit ourwebsite www.consilium-ifa.co.uk
