Inheritance Tax Planning

The good news is that there is no tax on assets passed between husband and wife or civil partner. The bad news is than, in principle, everything above the Nil Rate band, currently £325,000, is taxed at 40%, but with cheering good news that the survivor from a married couple or civil partnership will “inherit” the unused nil-rate band from their partner.  That generates a nil-rate slice of up to £650,000 on the second death between a couple.

On the face of it tax planning by Will would do no better than that.  Nevertheless it still has a place in that it reduces the periodic charges to Inheritance Tax that arise if assets are held in a “Trust”.  It also preserves the additional nil-rate band enjoyed by the survivor, which would otherwise be lost should they remarry.

If there are “business assets” then the arrangements protect those assets from the IHT net should the assets be sold after the first death between a couple.

That, and other manipulations, may reduce potential IHT bills of tens if not hundreds of thousands of pounds to zero.

Getting in touch with County Wills (Northampton) Ltd won't cost you anything.

Call 01604 455073, or fill in the enquiry form. Alternatively you can email wills@wills.uk.net