Inheritance Tax in the UK can have a dramatic impact on what you leave to your family. In this article we’ll share some ideas and tips on how to minimise how much you’ll have to pay.
It’s important to note that the UK inheritance tax system is progressive. This means that the amount you pay increases according to the value of your estate after certain exemption limits. The most notable exemption allowance is £325,000 per person and any gift or bequest up to this amount are exempt from Inheritance Tax. Note, however, if your Estate’s value exceeds this figure then anything above it has potential to be taxed at 40%.
These rules can be complex when it comes time for your beneficiaries to ensure Inheritance Tax has been paid properly and efficiently – but there are a few steps you can take now to help minimise the liability when it comes time to pay Inheritance Tax.
Get Professional Help
If you are likely to pay inheritance tax then it is probably worth seeking professional advice.
A qualified tax accountant or solicitor can help you understand inheritance tax and how it applies to your situation. They can also advise on the most efficient way of handling any liabilities, as well as providing guidance about any exemptions that may be available.