INHERITANCE TAX

> WHAT IS IHT?
> PETS
> TRUSTS
> INSURING LIABILITY
> GIFT BONDS

IHT Tax Exemptions

It is also very prudent to make the IHT tax exemptions work on your behalf and under current legislation they are as follows.

Nil Rate Band

As mentioned above you only pay tax on assets above the current figure of £325,000.It is very important that your Wills reflect the nil rate band allowances.

Transfers between Spouses

IHT is not payable upon transfer of assets between husband and wife upon death. This does delay the IHT payment and should be considered when reviewing your Will arrangements.

Annual Gifting

You can gift £3,000 worth of assets each year to whoever you like and this should be utilised wherever possible.

Marriage

You can also gift £5,000 to your own child upon marriage, £2,500 to a grandchild and £1,000 to anyone else.

Gifts from income

Regular gifts can be made from excess income to whomever you like. This is a very efficient way of reducing your IHT liability for high earners.

Gifts to Charities

Any gifts made to a registered charity are exempt from IHT.