Inheritance tax can be an expensive and unexpected payout for families if the right measures aren’t followed. For financial advisers such as our Morley team, tax breaks to avoid these are common knowledge due to our background and industry experience.
Heritage Wealth Solutions are therefore delighted to hear that individuals across the country, including here in Yorkshire, are becoming wise to inheritance tax and understanding how to avoid it.
Though many know that there is a tax break on assets – including cash and property – that are given away more than seven years before you die, according to reports it hasn’t been until recently that people were made aware about a second tax relief to avoid inheritance tax. This tapered relief is on gifts which are given away three to seven years before you pass.
New figures released by HMRC show that tax relief gifts in 2014/15 were worth £30 million: that’s £5 million up from the previous year. What’s more, the good news is set to continue within this tax year, with HMRC predicting another £5 million increase between 2015 /16.
These tax reliefs on inheritance tax are the best loopholes to avoiding a big payout until new laws come in next year. At present, inheritance tax applies to all individuals in the UK who are taxed 40% on inherited estates worth more than £325,000 for individuals and £650,000 for married couples.
In April 2017, though, the government is introducing a new band that will apply to property passed onto children or grandchildren after death. This raises the threshold to £500,000 for individuals and £1 million for couples. These new financial reforms are set to hopefully avoid people paying out large tax bills after inheriting a loved ones estate.
At Heritage Wealth Solutions, our financial advisers work closely with Yorkshire residents in the Leeds, Wakefield and surrounding areas, advising them on inheritance taxes, wills and investment opportunities. Such early planning can not only be more profitable for you during your later years, but it can mean that your family does not suffer with the stress and burden of paying out money after your death.
We understand that financial planning can be extremely difficult, and that’s why our advisers here in Morley are always 100% honest with our clients on their situation and options, never leaving them in the dark. Our financial advice is always purely to help the individual or couples we are dealing with and never for our own gain.
Should you need advice on inheritance tax, will writing, investment opportunities or retirement planning (including pensions), please do not hesitate to contact our Morley office on 0113 350 2080 to arrange a free consultation either over the phone or at your home.