‘Nothing can be said to be certain, except death and taxes’, said Benjamin Franklin in 1789. Add the two together and the sum of the parts is Inheritance Tax. How to make sure you pay the right amount of inheritance tax is a question which you should be asking.
We should all pay the taxes which we are legally required to pay, you can take that as a given. However, it could be said that too many people are paying too much inheritance tax – simply because they don’t understand the rules.
Understand the rules and pay the right amount of inheritance tax
Here at Jones Harris we have an experienced team of tax experts who can answer all your questions in detail. There are some common general misconceptions which you might like to consider. When you understand the rules you can make sure you pay the right amount of inheritance tax.
For example, did you know that you can gift tax free to spouses and civil partners? And that it’s also possible to make annual cash donations without incurring tax? There are various sliding scales of what counts as a taxable gift in the seven years before your death. We can explain all the details.
The benefits of giving your house away before your death is another commonly asked question. As you might expect this is another area where different rules apply in different circumstances. Again, we have all the answers about what’s best for you here at Jones Harris.
One commonly held belief is that co-habiting couples have rights over property as a surviving spouse. They may have rights in other areas, but in this case they don’t. Millions of couples who live together could benefit to the tune of billions if they were to have a civil partnership. Until the rules are reformed it makes sense to make sure that your affairs are in order.
Watch out with pensions too. Although the benefits from most pension schemes aren’t subject to IHT, HMRC are on the lookout and challenging cases where they think fit. Particularly where transfers have been made in the months before an individuals death.
To fail to plan…
If your estate, or that of a loved one, is likely to accrue Inheritance Tax charges, it only makes sense to take advice before it becomes a problem.
Here at Jones Harris we have an experienced team of tax experts who can provide the detail around how each of these scenarios would apply to you. They can help you to formulate a plan so that your family and loved ones won’t be penalised after your death.
Why don’t you get in touch for a no-obligation chat?
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