INHERITANCE TAX

This is a tax on your house and savings (known as your estate) at death. The tax rate is 40%.

Generally the best way to save tax is to give away assets while young and healthy, more than 7 years before you die. Most people have to live and do not want or cannot afford to give away their savings.

Inheritance tax is generally exempt on the first £325,000 in 2010/2011 and thereafter taxable at 40%. The most important exemption is that no tax is payable on amount left to your husband or wife provided they are domiciled in the United Kingdom.

There are exemptions for business property and annual gifts of £3,000 and small gifts of less than £250 to different people. There are a number of schemes available to mitigate the position.

Please contact us for advice.