Inheritance Tax

Inheritance Tax (IHT) has been described as a voluntary tax, which can be minimised with proper planning.

In fact, Labour politician Roy Jenkins in 1986 famously said “Inheritance Tax, is broadly speaking a voluntary levy paid by those who distrust their Heirs more than they dislike the Inland Revenue.”

Inheritance Tax is a one-off tax which is payable on your assets and possessions above a set threshold.

If you are married or have a civil partner, he or she can transfer their allowance to you.

Many people are surprised to find out that they have an IHT liability once they add up the value of their home, assets and possessions. A staggering £3.3 billion was paid in Inheritance Tax in 2014 according to HM Revenue and Customs.

Announcements in the recent Budget have changed the way Inheritance Tax is calculated and when it is applied.

Note that tax planning is a complex area and you should always seek professional advice relevant to your own personal circumstances.

 

Inheritance tax

 

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