 |
| Unfortunately,
a lack of understanding relating to the rules about inheritance
tax means that an increasing number of people who die each year
could end up leaving more to the taxman than they bargained for.
|
|
Keeping
it simple
Currently the Inheritance Tax (IHT) rate is 0% on the first £263,000
(the nil-rate band allowance) you leave, but assets over this
amount are currently taxed at 40% unless they pass to your surviving
spouse. So, for example, if your estate is valued at £2,000,000
and you have made no previous gifts, no IHT is payable on the
first £263,000. But, the remaining £1,737,000 is charged
at 40%– producing a £694,800 tax bill. Who would have
to pay this?
Do the sums
If you think that your estate could have a potential IHT liability,
the first step is to talk to us – you are probably far wealthier
than you imagine. Take a few minutes to calculate the potential
tax bill your estate could be liable to! Please note that this
will give you an indication of the potential IHT liability on
your estate. For a more accurate picture, please contact your
Independent Financial Adviser.
What
is the value of your estate?
|
|
| Value
of: |
Your
home (and contents)
Your business *
Bank/savings account(s) Stocks and shares
Other investments, such as ISAs, EISs *, VCTs, PEPs, unit and investment
trusts, OEICs Insurance policies (not written in trust)
Car(s)
Jewellery
Other assets |
|
| Total
assets (a) |
£ |
|
| Deduct: |
£ |
|
| Mortgage |
£ |
|
| Loans |
£ |
|
| Other
debts |
£ |
|
| Total
liabilities (b) |
£ |
|
| Net
value of your assets (a) – (b) |
£ |
|
| Add:
Non-exempt gifts made in the last 7 years** |
£ |
|
Deduct
Nil-rate band |
|
-£263.000 |
| Taxable
estate |
|
£ |
| Tax
at 40% is |
|
£ |
| |
Key
ISAs – Individual Savings Accounts
EISs – Enterprise Investment Schemes
VCTs – Venture Capital Trusts
PEPs – Personal Equity Plans
OEICs – Open Ended Investment Contracts |
*
You may be eligible for 100% relief on your business property or,
less commonly, 50%. EIS shares normally count as business property
for these purposes.
** Chargeable and potentially exempt transfers |
|
