Clive Freeman Financial Adviser
7 Lords Drive, Telford, Shropshire, TF2 9UE |  Telephone 01952 299512   Mobile 07985 414252 |  Email info@freeman-ifa.com
Clive Freeman Financial Adviser - is an appointed representative of Network Direct Limited, which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority do not regulate Will Writing, Loans, Credit Cards, or some forms of Mortgage, Tax Advice, Offshore Investments, and Estate Planning. This site is intended for UK investors only. 7 Lords Drive, Telford, Shropshire, TF2 9UE |  Telephone 01952 299512   Mobile 07985 414252 |  Email info@freeman-ifa.com
Inheritance Tax Planning

Inheritance Tax Planning

.
Inheritance Tax (IHT) is the tax levied on the value of an estate on death if it exceeds the nil rate band. Your estate is the value of all your assets e.g. house, investments, car, furniture, cash etc. The current nil rate band for the tax year 2018/2019 is £325,000. This is the first slice of your estate which is taxed at 0% hence the name nil rate band. The value of everything you own above this amount is taxed at 40%. IHT normally has to be paid within 6 months of death otherwise interest is charged on the amount owing. In addition to the allowance of £325,000. Individuals with direct descendants who have an estate (including a main residence) with total assets above the Inheritance Tax (IHT) threshold (or nil-rate band) of £325,000 are entitled to and an additional nil-rate band when a residence is passed on death to a direct descendant. This will be: £125,000 in 2018 to 2019 £150,000 in 2019 to 2020 £175,000 in 2020 to 2021 It will then increase in line with Consumer Prices Index (CPI) from 2021 to 2022 onwards. Any unused nil-rate band will be able to be transferred to a surviving spouse or civil partner. Given that many homes are now valued in excess of the nil rate band IHT is no longer a tax affecting only the wealthy. There are many methods of reducing the liability that your beneficiaries may need to find and planning is essential. Doing nothing is not an option if you wish to save IHT. Planning methods can include any, or a combination, of the following: • Holding properly drafted Wills • Making use of exempt beneficiaries • Making use of exempt transfers • Ensuring Life policies are written in Trust • Placing funds in Trust • Potentially Exempt Transfers Solutions are individual and we can provide bespoke expert financial advice to help you reduce the IHT
Clive Freeman Financial Adviser
7 Lords Drive, Telford, Shropshire, TF2 9UE Telephone 01952 299512 Mobile 07895 414252  Email info@freeman-ifa.com
Clive Freeman Financial Adviser - is an appointed representative of Network Direct Limited, which is authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority do not regulate Will Writing, Loans, Credit Cards, or some forms of Mortgage, Tax Advice, Offshore Investments, and Estate Planning. This site is intended for UK investors only. 7 Lords Drive, Telford, Shropshire, TF2 9UE |  Telephone 01952 299512   Mobile 07985 414252 |  Email info@freeman-ifa.com

Inheritance Tax Planning

.
Inheritance Tax (IHT) is the tax levied on the value of an estate on death if it exceeds the nil rate band. Your estate is the value of all your assets e.g. house, investments, car, furniture, cash etc. The current nil rate band for the tax year 2018/2019 is £325,000. This is the first slice of your estate which is taxed at 0% hence the name nil rate band. The value of everything you own above this amount is taxed at 40%. IHT normally has to be paid within 6 months of death otherwise interest is charged on the amount owing. In addition to the allowance of £325,000. Individuals with direct descendants who have an estate (including a main residence) with total assets above the Inheritance Tax (IHT) threshold (or nil-rate band) of £325,000 are entitled to and an additional nil-rate band when a residence is passed on death to a direct descendant. This will be: £125,000 in 2018 to 2019 £150,000 in 2019 to 2020 £175,000 in 2020 to 2021 It will then increase in line with Consumer Prices Index (CPI) from 2021 to 2022 onwards. Any unused nil-rate band will be able to be transferred to a surviving spouse or civil partner. Given that many homes are now valued in excess of the nil rate band IHT is no longer a tax affecting only the wealthy. There are many methods of reducing the liability that your beneficiaries may need to find and planning is essential. Doing nothing is not an option if you wish to save IHT. Planning methods can include any, or a combination, of the following: • Holding properly drafted Wills • Making use of exempt beneficiaries • Making use of exempt transfers • Ensuring Life policies are written in Trust • Placing funds in Trust • Potentially Exempt Transfers Solutions are individual and we can provide bespoke expert financial advice to help you reduce the IHT