Inheritance Tax
Inheritance Tax (IHT)
is the amount of money paid on your estate upon your time of
death. It can also affect monies which are transferred into
trust funds during your lifetime. IHT is only payable if the
deceased's estate is worth more than £312,000 (2008/9 rates).
This is referred to as a nil band rate and is exempt from
IHT.
Any assets or estate
left above this amount is taxed at a higher 40 per cent. During
your life time is it possible to give monetary sums away to
certain people and organisations without having to pay any IHT.
These 'Gifts' can be made during your lifetime or as part of
your will.
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Exempt
beneficiaries can include
the following:
-
Your husband, wife or civil
partner, even if you are separated
(but not if you are divorced or the
partnership has dissolved), as long
as each person has a permanent home
in the UK.
-
UK charities
-
Some national institutions
including Museums, Universities and
the National
Trust
-
UK Political Parties
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Some Gifts are also
exempt from IHT because of the type of gift or reason for
making the payment.
Annual exemption allows you to give up to £3000 a year without
paying IHT. You can carry forward any part of the £3000 in any
one tax year to be included in the next. This means you can
give away £6000 (maximum) in one year if a gift was not given
in the previous year.
Detailed commentary on all IHT issues
can be found on the blog of partner, Paul Solomons
at:-
www.iht-solutions.net
Book an
Appointment
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For a
free initial
consultation with a member of
our Private Client Team at either our
Bournemouth or Christchurch office, simply
contact us, we’ll book you an appointment at a
time that is convenient for you and you’ll be
able to discuss the process and outcome of your
matter with a specialist in that
area.
Paul Solomons -
Head of Private
Client
T:
01202 802
807
E:
paul@solomonslaw.co.uk
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