What is Inheritance Tax?
Inheritance tax is a tax imposed on an individual – usually the beneficiary who inherits a property or money after their relatives have died.
Currently, if an individual has assets worth more than £325,000 (including cash held in deposit, savings accounts and the family home) any amount over £325,000 will be subject to 40% tax. Married couples have a combined nil-rate threshold of £650,000 with the surviving spouse being able to transfer any used allowance from their deceased spouse.
Nobody likes the idea of their family losing up to 40% of their money in taxes. But that’s what can happen. When you die, HM Revenue & Customs can claim 40% of your estate above the threshold of £325,000 (the tax free allowance for the 2015/16 tax year).
If the total of your assets exceeds the current inheritance tax limit there may be a need for a financial advice and tax planning. Contact The Will Writing Company and we will be more than happy to arrange for you to recieve independant expert advice.