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Inheritance Tax Advice

August, 2014 TSG_PTIMG_620x920_Money

Inheritance Tax


This is now a ‘mass market’ tax, set to be paid by millions of homeowners as the prices of properties soar, economists have warned.

It’s the tax that most people forget about whilst they are alive and then pass-on to their families they leave behind to deal with,

once they have passed away.


There is one certainty in this life:

We are all going to pay tax, and we are all going to die.

When IHT is payable, it means we are doing both together!

Why does this happen?


The IHT Threshold, what is it?

The limits have remained the same since 2009, with no news of any increase.

£325,000, per individual.


£650,000 for married couples and registered civil partnerships.

The excess is then taxed at 40%

(36% if you leave at least 10% to a Charity)


Haven’t we all paid enough tax during our lifetime

to pay even MORE tax on our Estate?


What makes up an Estate Value?

* House/Property – The average house price Aug 2014 in the UK is £262,000

* Gifts made in the previous 7 years

* Isa’s, Savings, Investments

*Payments from Life Assurance Plans.


Example of IHT payable:

Estate Value is £500,000

Less £325,000 single person threshold

Means £70,000 IHT payable by family receiving the Estate.


Married Couple Estate Value of £800,000

Less £650,000 allowances used on 2nd person’s death

Means £60,000 IHT payable by family receiving the Estate


Financial Advice received NOW could reduce the IHT payable or even remove the chance of it being paid.



* Whole of Life policies could be started, with a monthly or annual premium payable, where the insurance foots the bill and NOT the Estate or the family!


* Investments can be altered/set up written under a ‘Trust’, in order that they fall out of the Estate on death, and therefore don’t form part of the IHT estate figures.  This is not immediate but after a number of years since actioned.


Helen Gadsby DipPFS
Financial Adviser , Based in Leicestershire.
Offering a up-to-one-hour discussion at my expense
Mobile: 07928 676 675

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