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Inheritance Tax Advice
Inheritance Tax Advice
Inheritance Tax (IHT) Allowances and Exceptions
Taxes are inevitable, but certain allowances and exceptions can reduce or exempt Inheritance Tax (IHT) liability.
Allowances: The estate value above the nil-rate band (£325,000) is taxed at 40%, unless transferred to a spouse or civil partner. Couples can combine unused allowances, allowing them to pass on up to £650,000 tax-free.
Exceptions: Strategies to minimize IHT include:
- Gifts to Partners and Family Members
- Small Gift and Annual Exemptions
- Charitable Donations
- Life Insurance Policies
These measures help reduce taxable amounts on an estate.
Our Expert Accountants
At AAG, our expert accountants can guide you through inheritance tax (IHT) strategies to help minimize your liability. IHT is levied on assets inherited from a deceased person, with the tax rate influenced by the value, the beneficiary’s relationship to the deceased, and location. Proper planning is essential to avoid burdening beneficiaries, who might otherwise need to sell assets, like a family business, to cover tax costs. AAG provides personalized advice to reduce IHT impact and ensure efficient asset transfer to your loved ones.
