Advice in relation to Inheritance Tax
Many more individuals now face the prospect that their family will have to deal with an Inheritance Tax (IHT) liability following their death and wish to plan in lifetime to mitigate this.
At TC Young our team regularly advise clients of their current Inheritance Tax position, available allowances, use of Trusts and the overall impact of making larger gifts to family members and/or to charities.
Our solicitors will provide you with tailored advice to suit your needs and where appropriate work with your accountant and/or Independent Financial Advisor to support your overall plan.
Our team of specialists
You are in safe hands with our skilled and experienced team of trusted advisors.
- Partner
- Partner
- Senior Solicitor
- Solicitor
- Solicitor
- Solicitor
- Accredited Paralegal
- Trainee Solicitor
FAQs
The answers to some of our most frequently asked questions.
What is Inheritance Tax?
Inheritance Tax (IHT) is a UK tax which may be charged on the estate of a deceased individual where the total net value (which includes property, money, and possessions) of their assets exceeds the Nil Rate Band (currently £325,000). It can take into account gifts made by the deceased in the 7 years before death as well. Assets in excess of the allowances will be charged at a rate of 40%.
Executors must deal with any liability, including IHT, before distributing a deceased’s estate.
What is the Annual Gift Exemption?
The Annual Gift Exemption currently permits an individual to gift up to a total of £3,000 each tax year without these gifts being added to the value of their estate for Inheritance Tax purposes.
What is a Potentially Exempt Transfer (PET)?
Potentially Exempt Transfers (PETs) are gifts made during a person’s lifetime that are exempt from Inheritance Tax, provided the donor survives for at least seven years after making the gift. Liabilities may arise if a donor gifts more than £325,000 during their lifetime
Can I gift money to charity?
Yes, monetary gifts to registered UK charities are not subject to Inheritance Tax or Capital Gains Tax. Such donations can reduce the size of your estate and simultaneously support charitable causes. Gift aid may apply to further benefit the charities and your own tax position.
