Inheritance Tax

Large house price rises over the last few years has meant most people's estates will result in a tax liability, unless immediate action is taken.

This potential damaging inheritance tax liability can be minimised and in some cases removed altogether by relatively straight-forward tax planning. Most family homes pass to a surviving spouse without attracting Inheritance tax, but it is not a complete exemption-liability is merely deferred until the death of the survivor. The ideal situation would be to make gifts and bequests to the value of the nil-rate band on the first death, thereby reducing the estate by subject to tax, but this may only be possible on larger estates with more liquid funds, where the home is not the main asset.

In many cases a tax efficient Will can result in any potential tax liability being completely removed. They can be designed to withstand political party changes.

There are many tax avoidance schemes available at the moment, it is important you understand any scheme you plan to undertake fully as you may need to be proactive to any changes in the law. A simple rule to remember is that couples have two inheritance tax nil-rate bands and these can be legally used to your advantage in the majority of cases.

Aurora Accountants strongly advise you to begin your inheritance tax planning right away by contacting us for an estate tax planning review.