With November’s Budget fast approaching, Gary Walker Wealth Management is looking to help people get tax smart.
Each week we’re sharing insights from our guide to ensure you make the most of the allowances available. This week, we’re looking at Inheritance Tax.
Click here to download the full guide.
For many families, Inheritance Tax (IHT) comes as an unpleasant surprise. The rates can feel punitive, but the good news is that there are steps you can take to reduce the potential bill.
As the guide explains: “The high rate at which Inheritance Tax (IHT) is charged gives many families a shock, so it’s well worth doing what you can to take advantage of the relevant tax reliefs and allowances available to you. Although the nil-rate band of £325,000 per person may seem generous, the 40% rate at which IHT is paid on the rest of your estate is not, subject to other allowances being available.”
The key is forward planning. Each year, you and your spouse or partner can gift up to £3,000 each (£6,000 together) without it being counted as part of your estate. If you didn’t use last year’s allowance, you can carry it forward, gifting up to £12,000 in the current tax year. Larger gifts may also become exempt after seven years.
With frozen thresholds and future changes to pension treatment, IHT planning is becoming ever more important. Acting early can make a huge difference to what your loved ones inherit.
Click here to download Gary Walker’s full guide to smart tax planning. Alongside ISAs, you’ll find insights on the Personal Savings Allowance, pensions, Inheritance Tax, and Capital Gains Tax – all designed to help you stay ahead this tax year.