Lang Bennetts Chartered Accountants is offering a free personal inheritance tax (IHT) assessment for clients who are concerned about leaving their beneficiaries with a sizable tax bill to pay on their death.
Official Government statistics show that total IHT receipts for the 2016\17 tax year stood at £4.8 billion – a 66% increase over the last five years alone.
If a taxable estate exceeds the current IHT thresholds, everything above this that is not left to a spouse or civil partner, will be taxed at 40%. In most cases, beneficiaries will have to pay this.
The current thresholds are £325k for those who are single or divorced, and up to £650k per married/widowed couple.
Since April 2017, a new main residence nil-rate band has gradually been introduced which will help people who want to leave their home to a direct descendant – a child or grandchild for example. The legislation is complex, however, and full of potential traps for the unwary.
“With increasing house prices, IHT doesn’t just affect the very wealthy,” said Lang Bennetts tax director Simon Prior. “It’s very important to review your position regularly if you want to limit the liability for your beneficiaries.”
To that end, Lang Bennetts is offering to calculate approximate IHT liability.
Anyone concerned about their IHT position, who is not currently a client of Lang Bennetts, is welcome to arrange a free initial meeting.