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Finance

From gifts to wills – you may be able to slash inheritance tax bill

Make larger gifts People can also pass on as much as they like IHT-free, as long as they live for at least seven years longer from the date of payment. Mr Davies said: “So long as you live for at least seven years after giving money away, there will be no IHT to pay.” Leave […]

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Finance

What gifts are exempt from inheritance tax?

“However, if the donor dies sooner, the tax will be charged on the gifts at various levels if the Inheritance Tax threshold is reached.” The gift would be taxed at the following rates: If the person dies within three years of giving the gift – 40 percent If the person dies within three to four […]

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Finance

Inheritance tax rates on gifts reduce under the 7 year rule

Inheritance tax is a tax on the estate of someone who has died and an estate is classed as a person’s property, possessions and money. It is usually charged at 40 percent on anything above the nil-rate band allowance. The standard nil-rate band is £325,000 per person, however, there are a few different ways a […]

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Finance

No mention of inheritance tax in Kwasi Kwarteng’s mini-budget

Inheritance tax receipts reached £2billion during the four months from April to August 2022, up £300 million on the same period last year according to HMRC figures. as more middle earners are caught out by rising property pirces and a stagnant threshold. Prime Minister Liz Truss recently promised to review inheritance tax but no changes were ammounced to the […]

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Finance

Unmarried couples at risk of missing out on inheritance legal rights

Unmarried couples are being warned they could be set for an inheritance nightmare, due to a “common law” myth. Perhaps most importantly is the rule that states there is normally no inheritance tax to pay if a person leaves everything above the threshold to their spouse or civil partner. However, this is not extended to those who […]

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UK

Two-in-three Brits back Charles paying tax on inheritance from Queen

Nearly two-in-three Brits believe King Charles III should pay tax on his private inheritance, an opinion poll has revealed. YouGov’s survey, which was conducted between September 15 and 16, claimed 63 percent of the public believe Charles should pay inheritance tax. A further 16 percent said the King should not pay inheritance tax, while 21 […]

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Finance

‘Inheritance tax axed, VAT slashed and 1p off income tax’ – Kwarteng

The new Chancellor has drawn a tax-cutting mini-budget as he battles to get the UK economy moving again. Instead of serving up more cost of living payments, he may put money into people’s pockets by slashing the tax burden. As we reported on Sunday, Kwarteng looks set to reverse April’s National Insurance increase, which lifted […]

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Finance

HMRC tool helps you work out how you can pay less inheritance tax

Mr Southorn said: “There are three ways to reduce your inheritance tax bill or reduce the mount of tax your beneficiaries will have deducted from their inheritance. One is to get a well written will.” As well as making sure someone has a will in place, the will writer also recommends making the most of […]

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Finance

Eight of UK’s 10 fastest-growing inheritance tax areas are low-earning

New research from leading private wealth law firm Boodle Hatfield revealed a startling eight out of the 10 fastest-growing areas paying inheritance tax (IHT) comprise the country’s lowest earners. The firm partly attributes this to the rate at which IHT starts to be paid having not changed for over a decade. Inheritance tax is applied […]

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Finance

Britons being ‘hit by’ inheritance tax – save your cash from HMRC

Recent figures from HM Revenue and Customs (HMRC) revealed that inheritance tax receipts hit £2.4billion in the three months to July 2022. This is a sharp increase of £300million over the same period of time from the year before which suggests more households. As a result, taxpayers are looking for ways to safeguard their finances […]