(My Original Blog Post: http://ping.fm/VoMdB)
If you have an investment or property portfolio, perhaps its time to review your estate. The Chancellors recent announcement to hold the threshold for Inheritance tax planning at £325,000, for the next four years may prompt the move.
Alistair Darling’s decision not to raise the IHT limit is expected to encourage many families and investors with assets over the threshold to review their situation.
Assets such as investments and property could possibly increase in value over the next few years. Effective tax planning could help offset the possible increase in Tax.
Making regular gifts to heirs is another way of reducing your estate liability to inheritance tax.
Another planning measure is making charitable donations, as these are fully exempt upon death.
After the first £325,000 in value of your estate called the “nil-rate” band is reached, the balance is taxed at 40 per cent.
If you would like to discuss any specific tax planning issues please contact us.
Consilium Asset Management is an IFA practice based in Bristol, South Gloucestershire.
