The Chancellor takes up to 40% of our income by way of income tax, taxes
any capital gains we make, again up to 40% and charges us National Insurance
on our income as well.
On top of all this she/he still requires that when we die our estate should
account for any Inheritance Tax due.
Planning for death may seem morbid, although when one considers the tax
which is potentially payable, it adds up.
During your lifetime your lifetime you may give certain assets away and
you have certain allowances which you can make without attracting IHT.
However, these gifts and allowances may not reduce your estate that much.
A good financial plan will help to mitigate IHT and for best results the
exercise must be undertaken early on. Do not leave it until you are 90!
IHT can be a complex issue and good advice is essential once every aspect
of your wishes and objectives have been considered. As gifts made cannot
usually be recovered in a tax efficient manner, it is essential that you
hold in depth discussions with a financial planner.
It is not advisable to be tempted by offers of products which mitigate
IHT unless you hold in depth talks, sometimes with members of your family
present.
Contact us and we'll get in touch, or call
us direct on 01324 832 715.
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