Turner Little talks cutting inheritance tax

Are you worried about the possibility of leaving your children with a large inheritance tax (IHT) bill? Taking action now could avoid this and put your mind at rest. At Turner Little we can help you come up with a plan to minimise your estate’s IHT, and to get you started, we’ve put together six things you can do straight away.

Turner Little lists the seven Inheritance Tax exemptions you need to know about

It’s important to make the most of limiting potential liability when it comes to your Inheritance Tax (IHT).

IHT affects more people than ever, because the threshold has stayed the same since 2010, while house prices have continued to rise. This has shifted the focus of IHT being more of a very wealthy person’s problem to it affecting middle class families too.

Learn about the 7 Inheritance Tax exemptions you should know about.

Five reasons Inheritance Tax should be scrapped

The government has made a few tax cuts, specifically abolishing Stamp Duty on properties worth up to £300,000. With many opponents to the idea, should Inheritance Tax (IHT) be the next target for cuts?

Here are five reasons why we think IHT doesn’t work in its current format.

Inheritance tax crackdown: Families to pay extra £900m by 2022

This year has brought particularly bad news for those families who may need to pay inheritance tax in the near future. The Office for Budget Responsibility (OBR) – the Government’s non-departmental public body who provide independent economic forecasts and analysis of public finances – have suggested that a number of factors are feeding into rising inheritance tax cost in the coming years.

Read the full article on the Turner Little Blog.

4 Ways to reduce Inheritance Tax

When planning your estate, beware of inheritance tax. If your estate’s value eclipses a specific threshold (£325,000 at present), when you pass away, your estate will be required to pay a 40% inheritance tax on the remaining fixed assets. Combined, couples can currently benefit from an inheritance tax threshold of £650,000 at present, assuming that neither you nor your partner can utilise other exemptions.

We should note that in 2017, the UK government will phase in another tax free band for your main residence. This will initially be set at £100,000, rising to £175,000 in 2020, so you may be able to bequeath £500,000 before inheritance tax. You can further shield your assets via other exemptions, but many must be deployed seven years before your death, so it is wise to plan for inheritance tax now. Turner Little considers ways to mitigate the effect of inheritance tax on your estate.

Read the full article.