Inheritance Tax and Estate planning

Much discussion has been heard in the last few years about Inheritance Tax and whilst the thresholds have been lifted dramatically, there are still circumstances where a taxpayer may be needlessly paying Inheritance Tax purely due to lack of planning or forethought. With the tax rate at 40%, it is ironic that without advice on estate planning, much of the good tax-saving work done during a person's lifetime can end up having been for naught. You can often isolate circumstances where Inheritance Tax planning will be of benefit. This may be in situations of:

• Larger Personal Estates
• Family Businesses where retirement is on the horizon
• Professional retirement from practice
• Where a person is in receipt of a large inheritance

We can undertake a review programme to ascertain if action is required - if not, we will tell you. If there are suggestions to be made, we will recommend these to you and we can work with your solicitors in putting in place the required changes. This may involve a redrawing of your Wills, setting up of trusts, or transfer of property.

Capital taxes have a strong interaction with income taxes in the life of a business and its development. The balance between the two often throws up a difference in the tax rates applicable and the proper conversation of one into the other (within the rules) is an objective in much longer-term planning.