Inheritance Tax (IHT)

The Financial Conduct Authority does not regulate on Estate Planning.

Inheritance Tax (IHT) is charged by the government upon the death of an individual when the ownership of assets and belongings (known as the estate) are passed onto living persons (beneficiaries). Under current legislation, everybody is provided with an Inheritance Tax allowance, up to which the value of the estate can be passed on tax free. If this figure is exceeded, then any additional sums are subject to an IHT charge.

Where the deceased had a living spouse, it is currently possible to pass on 100% of an estates value to them tax free, regardless of whether the total value exceeds the IHT allowance figure. Where there is no spouse to pass the estate onto, it is often possible to manage the eventual liability to IHT through careful financial planning when alive.

A Financial Adviser will be able to assess the likelihood of an individual being subject to IHT and provide guidance on legitimate opportunities, such as gifting, that can help to reduce the eventual tax costs to the estate on death.