Use your Inheritance Tax nil rate band – ask Principle First
The Inheritance Tax nil rate band is the amount of wealth you can transfer to your children, before reaching the Inheritance Tax threshold at which point an IHT liability arises.
The IHT nil rate band is £325,000 for an individual and then doubles to £650,000 for a couple or civil partnership. If the value of your estate exceeds these levels, your assets may be subject to Inheritance Tax at 40%. Given that, with a little quality financial planning, your Inheritance Tax allowance can be used to effectively reduce or eliminate any IHT liability you may have, the benefits of Inheritance Tax advice are clear.
Do you want to ensure full use of your Inheritance Tax nil rate band? Ask Principle First today - get financial planning advice or ring 0800 678 5929 now.
How do I use my Inheritance Tax nil rate band?
Effective use of the Inheritance Tax allowance in avoiding Inheritance Tax means simply taking measures to ensure that the IHT allowance covers as much of your estate’s value as possible. Reducing the value of your estate so that it is less than your IHT allowance is key to this strategy for avoiding Inheritance Tax. There are various ways of doing this.
First it is important to know what constitutes your estate. Your estate includes the value of your home and other properties, cars, valuables, savings, investments, and insurances. This is reduced by your liabilities – the value of your outstanding mortgage, loans and other debts – to give the value of your estate. You can easily calculate the value of your estate using the Principle First online Inheritance Tax calculator.
The first key step in reducing the value of your estate may be writing your life insurance in trust. This removes the value of your insurance payout from your estate, effectively reducing your estate’s value by hundreds of thousands of pounds, in just the short time it takes to work with one of our IHT team, to complete a simple form.
Our IHT advice will also cover using IHT exemptions and Potentially Exempt Transfers (PETs) as a tax-efficient means of reducing the value of your estate, by transferring as much of your wealth to your children as possible, during your lifetime.
Do you want to avoid Inheritance Tax? Get advice from Principle First today - submit an online iht advice enquiry or ring 0800 678 5929 now.
