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Private Client | Inheritance Tax Planning
Inheritance Tax (IHT) is a tax that is most commonly levied on the Estate of a deceased person. The tax payable by the Estate is 40% of the value of the net Estate above a Government-set IHT threshold. The IHT threshold as at February 2013 is £325,000. Above this, tax is payable at a rate of 40% on the estate subject to certain exemptions. The Government announced in December 2012 that the threshold is due to rise only by 1% for the year 2015-2016.

Main Exemptions where IHT is not payable

(i) Gifts to Spouses

For married couples and civil partners, the Government has introduced a special IHT relief that can allow the IHT threshold to be doubled (currently to a total of £650,000) between the couple. This is provided that the first spouse/civil partner to die leaves his/her estate to the surviving spouse/civil partner. This relief does not apply to individuals or un-married couples. Please contact us for further details of this measure and how this affects your family's IHT position.

(ii) Gifts to Registered Charities

Gifts to UK registered charities do not attract IHT as a general rule.

Using Trusts to Mitigate the IHT Bill

Using Discretionary Trusts (made with your Wills or alternatively made during your lifetime) will seek to protect the Estate of your beneficiaries to save IHT on the value of gifts made via such trusts on the death of each beneficiary receiving it. For more information please see our section on Trusts and Family Estate Protection.

For information on further suggested IHT planning measures please click here.

To arrange an appointment to discuss with our specialist lawyers please contact our Private Client Department secretary Jan Lawrence.

Telephone: 01494 729024

Email: jan@dc-kaye.co.uk