What is Inheritance Tax?
If the value of your Estate when you die is over £325,000* then your beneficiaries will face an Inheritance Tax (IHT) bill and our goal at Klarity Tax is to help you keep this as low as you can for your beneficiaries.
Our team of Senior Tax advisors are highly experienced in the area of inheritance management and fully understand UK taxation law and the HMRC process. They will work with you to achieve the most beneficial outcome for you and your beneficiaries by providing advice on your likely liability nd the options that are available to you to reduce any liability.
What do I pay tax on and how much is it?
You pay Inheritance tax on the value from your property, savings, personal assets or any other assets that you have an interest in. The current rate of tax is 40% on any value of your estate that is over £325,000* which needs to be paid within 6 months of the date of your death. In addition, you can also benefit from the ‘main residence’ tax allowance of £175,000 on your home.
The amount of tax you pay can also be reduced from 40% to 36% if over 10% of your Estate goes to charity.
What happens if I don’t obtain insight into my IHT liabilities?
Your Estate could be taxed a lot more than it needs to be – very important when your beneficiaries need to pay the tax before your Will can be distributed to beneficiaries. This can cause significant stress at what is already a very difficult time for your beneficiaries.
The more that is paid in tax, the less your beneficiaries receive which means less wealth remains in your family and your selected beneficiaries.
Your beneficiaries could be left with a gap in their own financial plans – family members often plan based on their expectations of what they receive in your Will before tax is paid.
You can miss out on taking opportunities that benefit charities whilst at the same time reducing the tax liability for your beneficiaries
A personalised Inheritance Tax report from your senior tax advisor is a vital part of the strategic planning for your Estate so that you able to leave your beneficiaries in the best possible position and enable you to maintain your required lifestyle.
This report is the first step you can take to help your family and future legacy which we can make possible for you. It will include details of the current Inheritance Tax rules, details of the ways you can mitigate the tax that would be applicable to your Estate and its beneficiaries.
How can I save Inheritance Tax?
There are several ways to reduce your tax liability including making gifts (sometimes in Trusts), obtaining business relief, giving assets away, putting assets into Trust or leaving part of your estate to charity to reduce the rate of tax.
Alternatively, you can take out life insurance and place this in Trust so that the benefit is paid outside of your Estate helping your beneficiaries meet liabilities before your Will is distributed.
Download our free guide.
What we need from you
Our Senior Tax advisors will need information on your current financial position. It is important that the information you provide is complete and accurate as this will form a key basis of the strategy provided to you. And, just as importantly your senior tax advisor will want to understand your future lifestyle needs.
It is essential that these needs are understood as the desire to reduce your inheritance tax can lead to unintended consequence of you not having enough money to meet your future lifestyle needs, it is important to balance both.
How much does it cost?
The cost of you personalised Klarity Tax Inheritance Strategy is based on your personal estate and your objectives. We will issue a specific letter of engagement for your approval and signature before we start work on your behalf. And, once we receive all the information we need from you, we guarantee to provide your strategy within 30 days.
Speak to us for advice on how to maintain
your wealth by reducing your Inheritance Tax.