Inheritance tax is payable at 40% on estates over the value of £325,000. However there are many reliefs and tax planning advice is essential if you believe that your estate will exceed this amount.
It is important to know that any of the nil-rate band (£325,000) which is not used can be transferred to your spouse or civil partner.
If you own a trading business then this is likely to qualify for Business Property Relief which means that Inheritance Tax is not payable on the business. However, there are some pitfalls and we can review your business structure to make sure it qualifies.
It is important to realise that once you have sold your business the cash you receive will no longer be protected by Business Property Relief. In this scenario, our FCA regulated advisers can suggest investment vehicles that will qualify for Business Property Relief and provide protection against inheritance tax
Agricultural Property Relief protects property used in active farming from Inheritance Tax but the rules and case law are very complicated. We can review your current position and make recommendations on any changes needed to make sure you qualify.