When someone dies, inheritance tax (IHT) is charged on certain assets, at 40 per cent over what’s known as the ‘nil-rate’ band. The nil-rate band is set by government budgets and the threshold may not include main residences where the tax thresholds are set to increase until 2020.
It is worth remembering that there are lots of ways people can mitigate their exposure to IHT. These include such measures as using up the annual exemptions for gifts, structuring a will to make the best use of tax relief on certain assets (such as agricultural or business property), and ensuring that other exemptions and reliefs are fully utilised and not lost.
We provide advice on how individuals can maximise the current exemptions in place for Inheritance Tax through their will structure. This includes advice upon the new Residence Nil Rate band legislation phased in from April 2017.
We also offer advice around the use of Trusts in lifetime to maximise exemptions for Inheritance Tax.