£325,000 – The first £325,000 value of your estate is called the ‘Nil Rate Band’ because, although it is taxable to Inheritance Tax (IHT), it is taxed at 0% (tax year 2015/16).
40% – Currently, IHT is payable on death at this rate on the value of your net assets over £325,000 (tax year 2015/16).
7 – The number of years you must survive if you give away large amounts of money or valuable assets while you are alive, otherwise HMRC will tax you for IHT as if you still owned them when you die (tax year 2015/16).
£3,000 – Everyone has an ‘Annual Exemption’ from IHT on gifts of this amount every tax year (tax year 2015/16). If you did not use this exemption in the previuos tax year, you can carry it forward to this year.
£5,000 – If your children get married, you can give them or their new spouse a lump sum up to this value completely free of IHT (tax year 2015/16).
£2,500 – If your grandchildren get married, you can give them or their new spouse a lump sum up to this value completely free of Inheritance Tax (tax year 2015/16).
£650,000 – On the death of the survivor from a married couple or registered civil partnership, where the estate exceeds this amount, IHT will usually only be paid on the excess. The necessary claims need to be made to HMRC with the appropriate time limits (tax year 2015/16)
If you have any questions or would like more information on Inheritance Tax planning, please get in touch – we look forward to hearing from you.
Tax advice which contains no investment element is not regulated by the Financial Conduct Authority.