Someone’s is sitting in the shade today because someone planted a tree a long time ago .. Business Property Relief Schemes (BPR) invest in assets that are high risk and can be difficult to sell such as shares in unlisted companies. The value of the investment and the income from it can fall as well as rise and investors may not get back what they originally invested, even taking into account the tax benefits. If the value of your estate is in excess of £325,000 (Nil Rate Band or NRB) until the tax year 2018/19 then potentially yes. There is now a Residential Nil Rate Band (RNRB) too, where, initially, the RNRB was set at £100,000 but increases by £25,000 each year until it reaches £175,000 in April 2020. Just like the standard Nil Rate Band, any unused RNRB on the first death of a married couple or civil partners has the potential to be transferable even if the first death occurred before 6 April 2017. However, the RNRB does come with conditions attached and so may not be available – or available in full – to everyone. Yes some gifts made in life, will be entirely exempt from IHT, but, not all. If you live for seven years after making the gift, it may be exempt from IHT on death or second death. On death, IHT is payable from a person’s estate, typically after probate has been granted, however, if trusts are used probate can, in some cases, be avoided. IHT is payable at 40% over and above the NRB and RNRB. Gifts made in life are subject to different rules. If yes, your business could qualify for BPR or Business Property Relief, i.e. your business could be passed on with no IHT being paid. Assets owned personally but used by a partnership attracts a different rate of relief at 50% If you own a business you will likely need a business clause in your Will to direct assets in line with your wishes accordingly. You’ve paid the tax man all your life and you will probably have to pay him again when you die, so, why not ensure that you are not over paying tax that you needn’t. Perhaps the most important advice I give to my clients is to plan carefully and do not leave things to chance. My job is to help you grow and protect your assets by providing the knowhow you need to make informed decisions about your future. I then help you implement the strategy into a reality. I work with you over the long term, helping you to build, brick by brick, a successful and robust financial situation. Get in touch to discuss your personal and business tax requirements.
Inheritance Tax Planning
Do you need to plan for a potential Inheritance Tax on death?
Can I make gifts in life which will be exempt from IHT?
How much tax will my Estate have to pay when I die?
Things to consider when planning to give a financial legacy
Are you a business owner?
The basics of managing an IHT liability
Next steps ..
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