Inheritance Tax Planning

Having worked hard to build up their wealth, many people feel uncomfortable at the thought of losing a large part in tax upon their death and would prefer to maximise the amount left to their children and other heirs.

It was announced in 2015 that changes to the Inheritance Tax threshold will be brought in from 2017 to 2020.
Current rules state that when you die you can leave your entire estate to your spouse/civil partner without triggering any IHT bill. But if you bequeath any of your estate to anyone else, there is a 40% IHT charge if the estate is worth more than £325,000. Any allowance not used by the first spouse/civil partner to die can be transferred to the surviving spouse/civil partner, up to the full amount of £650,000.

These rules are to remain in place, but a new tax-free band worth £175,000 per person on your main residence will be introduced to add to the existing threshold of £325,000, taking it up to £500,000 per person where there is a main residence involvedbut only if the property is passing to a child or other qualifying descendant.

The full £175,000 additional threshold will be introduced gradually. It will be set at £100,000 from 2017, rising by £25,000 each year until it reaches £175,000 in 2020. however it will be cut back incrementally for estates that exceed £2 million.


There are many ways in which this liability can be reduced, with some solutions being immediate, some being effective after 2 years and some after 7 years. We can help you to identify the extent of the potential liability, then discuss and advise on the different ways in which it can be addressed.  For example:

  • Making full use of exemptions and allowances
  • Making gifts during your lifetime
  • Setting up Trusts, including 'Discounted Gift Trusts'
  • Business Property Relief (PBR) based investment schemes
  • Life assurance based solutions

    
We aim to increase your children and grandchildren's inheritance, rather than the taxman's.

The Financial Conduct Authority does not regulate Inheritance Tax Planning and Trusts


If you would like the opportunity to discuss the issues that concern you please contact our team for more details on our services, via the 'Contact us' page, via email to enquiries@horlockholdcroft.co.uk or by calling the office directly on 01825 766130. We would be pleased to advise you on the most suitable plan for your financial goals based on your individual needs and circumstances.