INHERITANCE TAX PLANNING
Good Inheritance Tax planning allows you to maximise your assets to your family and friends.
Inheritance Tax is tax that may be payable on what people give away during their lifetime or when they die. Everyone is allowed to give assets of a certain amount exempt from Inheritance Tax, the so called Nil Rate Band. For the current Tax Year the Nil Rate Band is set at £325,000 (2020/2021). In addition to the Nil Rate Band, your estate may be eligible for a further amount exempt from Inheritance Tax - the Residence Nil Rate Band - when your residence is passed on death to one or more direct descendants. This measure has come into effect for relevant transfers on death on or after 6 April 2017.
If there is a possibility that Inheritance Tax may be payable on your death, careful planning of your estate may reduce the bill. Although Inheritance Tax laws are now in favour of married couples or those in a registered partnership, the need to take appropriate tax planning measures is still necessary for many of us. Inheritance Tax planning is even more important for unmarried couples as they cannot automatically make use of the same favourable tax regime that married couples and registered partners are entitled to.
We work with a small number of carefully selected Financial Advisers and Accountants who can provide additional expert assistance when it comes to Estate and Inheritance Tax planning. Should the circumstances so require, then with your permission we can introduce you to one of our trusted advisers and work closely with them to ensure all arrangements complement each other.
Contact Cambridge Wills & Legal Services to find out more.