Inheritance tax UK planning

"Nothing in this life be certain save death and taxes" (Benjamin Franklin)

Inheritance tax in the uk can leave a costly legacy for loved ones. Let inheritance tax planning advice uk lead you through the mine field. Wikipedia definition of Inheritance Tax

Rising house prices may be taking more and more people close to the UK inheritance tax threshold (IHT) but 63% of people admit they haven't sought advice on how best to plan their estate, research has found. Definition of Inheritance

Three quarters of respondents in the UK said they where planning to leave an inheritance but only 34% to those questioned thought there estate would be liable for the 40% Uk inheritance tax due on everything owned over and above £300,000.

What is IHT?

Inheritance tax advice uk says IHT is essentially a form of death duties - the tax charged on what you leave behind when you die.

UK Inheritance tax does not just include property.

However, with the average UK property worth well over £200,000 and many estates also encompassing assets such as jewellery, shares and savings, failure to seek IHT on inheritance tax UK planning advice could mean that up to £400 out of every £1000 left for loved ones would go to the tax man. Who pays inheritance tax ?

Loved ones inheriting an IHT bill can also face the additional difficulty of having to pay the IHT, although HMRC (HM Revenue & Customs) procedures enable the bill to be paid once the funds have been released or in monthly installments in some cases.

Inheritance tax advice uk planning

Many will have spotted that you can avoid inheritance tax uk (IHT) entirely by leaving all your property to your spouse. However, this could increase your IHT bill in the long run. You need to talk to an expert to get the best advice you can. Is UK inheritance tax due ?

Exempt beneficiaries to uk inheritance tax

You can give things away to certain people and organisations without having to pay any Inheritance Tax. These gifts, which are exempt whether you make them during your lifetime or in your will, include gifts to: your husband, wife or civil partner, even if you're legally separated (but not if you've divorced or the civil partnership has dissolved), as long as you both have a permanent home in the UK
UK charities
some national institutions, including national museums, universities and the National Trust
UK political parties
But, bear in mind that gifts to your unmarried partner or a partner with whom you've not formed a civil partnership aren't exempt.

Exempt gifts

Some gifts are exempt from Inheritance Tax because of the type of gift or the reason for making it. These include:

Wedding gifts/civil partnership ceremony gifts
Wedding or civil partnership ceremony gifts (to either of the couple) are exempt from Inheritance Tax up to certain amounts:

parents can each give £5,000
grandparents and other relatives can each give £2,500
anyone else can give £1,000
You have to make the gift on or shortly before the date of the wedding or civil partnership ceremony. If it is called off and you still make the gift, this exemption won't apply.

 If in doubt see an expert like the ones recomended on this page.

Understanding IHT