Inheritance Tax
Inheritance Tax
Inheritance Tax (IHT) is a tax payable on your wealth when you die and on some gifts made during your lifetime. If your estate is worth more than a set value – currently £325,000 – (or that of yours and your partner’s estate is worth more than £650,000) then it is worth considering as to how you could potentially reduce the amount of inheritance tax your family and loves ones will have to pay. Lawson Legal Services will advise you on your individual circumstances and see whether there are any allowances and or exemptions which can help to reduce the amount of Inheritance Tax payable.

Allowances and Exemption

These allowances and exemption include:-

  1. Make use of annual exemptions (£3,000 per donor – £6,000 if not used before).

  2. Make small gifts of £250 to any number of recipients.

  3. Make potentially exempt transfers (PETs).

  4. Make tax-efficient Wills – they do still work for couples and are of particular benefit where one or both have previously been widowed.

  5. Write life policies in trust.

  6. Make absolute gifts – but only if you can afford to lose the capital.

  7. Direct your pension lump sum into a family trust.

  8. Direct your qualifying business or agricultural assets into a family trust.

Inheritance Tax – Did you know….?

Inheritance Tax must be paid before the grant of probate is issued.  In other words, Inheritance Tax has to be paid before you have access to your inheritance!