At Glaisyers we understand that inheritance tax is a worrying prospect. It could be due when you die, or if you make gifts during your life. Our specialist Wills and Probate specialist solicitors can help you work out when you need to pay inheritance tax and if you can claim exemptions to reduce the tax bill.
When someone dies, whoever organises their affairs must work out whether any Inheritance Tax (IHT) has to be paid. Everyone has a tax free allowance and you only have to pay tax if your assets are worth more than the available allowance. The current tax free allowance is £325,000 but this can be reduced by gifts you make during your life.
There are special tax exemptions which mean you don’t have to pay tax if a spouse, civil partner or charity inherits. If you make gifts to anyone else tax might have to be paid after your death.
Lots of gifts won’t cause you any tax problems. You can give away up to £3,000 each year before your allowance is affected and other smaller gifts might not count either. If you make larger gifts they will only cause problems if you die within 7 years. If you own a business or agricultural property you might benefit from special tax reliefs. Our Will and Trust specialists can help you to understand how your allowances will be affected.
Married couples and civil partners can add their IHT allowances together when the second person dies. Their family can inherit up to £650,000 before any tax has to be paid. Our specialist solicitors will get to know you and understand the gifts you want to make so there aren’t any unexpected tax bills.