Inheritance tax is the tax you pay on your estate when you die. The current limit at which you pay 0% tax is £325,000 and anything over that is 40%. Seems straightforward? Seems unfair? Well, there are lots of rules, exemptions and limits depending on your circumstances, and some couples will find they have a combined inheritance tax allowance up to £1,000,000.
However, whatever your circumstances, your tax thresholds have been frozen for five years (from 2021) and with the value of estates set to increase, this means a tax rise on your estate.
Mather & Murray Financial have inheritance tax specialists who can advise you on ways to mitigate tax liabilities and in some cases eliminate that liability altogether. The key thing with tax planning is to act early. Planning can reduce tax over several years and although there are some scenarios that can quickly eliminate inheritance tax liabilities these aren’t suitable for everyone so it’s important you speak to an independent financial adviser.