Keep within the Inheritance Tax threshold with Principle First
The first step towards avoiding Inheritance Tax is knowing your Inheritance Tax or IHT threshold. This dictates your personal allowance for Inheritance Tax, the amount you have tax-free before Inheritance Tax becomes due.
Once you have established your threshold for Inheritance Tax, you can calculate your potential liability with our IHT calculator, which will tot up the value of your estate and tell you much you would pay in Inheritance Tax today.
Find out how to stay under the threshold for IHT today. Making an IHT enquiry online or phone us on 0800 678 5929.
What is the current Inheritance Tax threshold?
As an individual, you have a tax-free allowance, or nil rate band, for IHT of £325,000. For a couple this means the IHT threshold stands at £650,000. Anything in excess of this allowance is over the IHT threshold, and subject to Inheritance Tax at 40%.
Your IHT liability will depend on how much of the value of your estate is above the IHT threshold.
Your estate includes the value of your home and other properties, cars, valuables, savings, investments, and insurances – less the value of your outstanding mortgage, loans and other debts. When you consider that a single insurance policy can add £100,000 or more to the value of your estate, it is easy to see how the threshold for IHT can quickly be reached.
At Principle First, we know that with a little forward planning, Inheritance Tax is easily avoidable. In fact, IHT has variously been termed a ‘voluntary’ tax, and the most avoidable tax of all.
Our Inheritance Tax advice can tell you about writing your life insurance in trust, which removes it from your estate and instantly cuts your estate value by the amount contained in your life policy.
We can also advise you on using Inheritance Tax Exemptions and Potentially Exempt Transfers or PETs to transfer wealth to your children in a tax-efficient way.
Ask us how you can reduce your Inheritance Tax Threshold! Get IHT advice now by making an advice enquiry online or phone us on 0800 678 5929.
