| About us |
|
|
|
| Information |
|
|
|
| Topics |
|
|
|
|
|
Inheritance tax planning |
I don't claim to be an expert on inheritance tax but there are a few basic things
that people should address.
The first thing you should do is MAKE A WILL! and keep it updated.
It is the middle classes who will have the
hardest time avoiding this tax. If you are filthy rich, say £100 million, it's not too
much of a hardship to give most of your money away while there's still a good chance of
surviving the required 7 years and struggling to survive by hanging onto a couple of million.
If your house and savings, that you need to live on, make up all of your assets you can't give
them away. It's also difficult to shield them from inheritance tax and still have access to them.
The other thing to consider is when you snuff it the executors of your will have to find the
money to pay the tax before they get access to the assets. Usually this means the executors have
to borrow money and pay interest. The amount involved can easily get into 6 figures.
Suggestions
Annual gifts. You can make annual gifts out of capital of £3,000. If you didn't use all of the
previous years allowance you can use the remainder in the current year. Between a husband and wife
that's £6,000 a year.
Small gifts. You can make as many small gifts, of up to £250 each, as you like out of income.
Gifts out of income. It's a bit harder to prove but if you can show that gifts have come out of
income without impacting on your lifestyle then those are free of inheritance tax as well. It's
difficult to show that a single gift qualifies but if there is a regular pattern it is much easier.
Paying the tax
There are a few ways in which you can make provision for the executors to pay any inheritance tax due.
You can buy an insurance policy. Usually these are whole of life second death policies and they are
written into trust. Another way is for the executors to complete Inland Revenue form D20 asking your bank
to pay funds directly from your account to the Inland Revenue.
Your home
If you have plans to try and shelter your home from inheritance tax, forget it. Gordon has changed
the law so it just isn't possible.
|
|
Home |
Put a Link Here |
Put a Link Here |
Put a Link Here |
How to find us
|
|
 |
| Pensions |
| Pensions are just
saving in a particular tax wrapper. As the debate rages keep in mind that there
are other legitimate savings plans that don't require you to lock up your money
with complete strangers for most of your life. |
|
|
|
| IR35 |
| Not the fearsome
tax gatherer it was originally thought to be. The Revenue lose most cases
these days and now it's really down to getting your story straight and avoiding
unhelpful contracts. |
|
|
|
| My Motorbike |
This is my motorbike. I bought it new just after I passed my test. It is a
1999 Honda Fireblade. |
|
|
|
|
|
|
