Inheritance Tax  

It isn't the most famous tax we pay, but, as more and more families are finding out, it's becoming the most punishing.

Inheritance Tax (IHT) is landing a growing number of bereaved loved ones with the biggest single tax bill that they have ever seen. On a single estate worth £600,000 the IHT bill amounts to an eye-watering £110,000! For many, where most of the value of an estate is derived from the family home, the only way to pay such a large tax bill is to sell it, even if other family members are still living there. Making their loved ones homeless was certainly not the type of legacy the deceased had intended...

The Basics of IHT

IHT is a charge made against the 'estate' that a person leaves behind, where the net value of the estate (assets minus liabilities) exceeds £325,000. The figure of £325,000 represents the current 'Nil Rate Band' (for the tax year 2010/2011), being the most a person can leave without IHT being applied. So for estates valued at less than £325,000, no IHT is payable. If any outright gifts were made by the deceased in the 7 years before their death, their value has to be added, which may push the value of the estate above the IHT threshold. The new Conservative-Liberal coalition government have confirmed that the Nil Rate Band is unlikely to rise for the duration of the new parliament.

Married couples (with UK domicile) have the advantage that they can transfer assets between themselves tax-free without limit on first death. However, unless valid Wills are in place that gift assets entirely to the other spouse, intestacy limits might operate to benefit other family members and complications could occur. Married couples should therefore act to preserve their generous tax status by writing reciprocal Wills and making their wishes clear.

From 9th October 2007, the Government announced that married couples and civil partners could transfer their individual Nil-Rate Bands to each other, effectively allowing the remaining spouse to double their tax-free Nil-Rate Band to £650,000 (at current rates) on second death. This amendment of the current regime does not apply to divorcees or unmarried couples. For unmarried couples, this means they're probably best served by utilising a Nil-Rate Band Discretionary Trust arrangement. In doing so each persons Nil-Rate Band can be fully utilised and the maximum amount of asset value can be protected against IHT.

Where one spouse is UK-domiciled but the other is not, only restricted tax-free transfers are possible. A UK-transferring spouse can only gift a further £55,000, over and above the prevailing Nil-Rate Band, to their non-domiciled spouse, making their effective Nil-Rate Band £380,000. This restricted tax-free transfer does not apply where the UK-domiciled spouse is receiving assets from their non-domiciled spouse.
 

Our Address: 549 Green Lanes, Palmers Green, London, N13 4DR

Postcodes currently served in and around London for Home Visits:
For Wills, Will Writers & Inheritance Tax (IHT) Planning:

N1,N2,N3,N4,N5,N6,N7,N8,N9,N10,N11,N12,N13,N14,                 N15,N16,N17,N18,N19,N20,N21,N22;

NW1,NW2,NW3,NW4,NW5,NW6,NW7,NW8,NW9,NW10,NW11

EN1,EN2,EN3,EN4,EN5,EN6,EN7,EN8,EN9,EN10,EN11;

HA7,HA8,IG1,IG2,IG3,IG4,IG5,IG6,IG7,IG8,IG9,IG10,IG11;

E4,E5,E6,E7,E8,E9,E10,E11,E12,E13,E15,E17,E18
plus RM1,RM2,RM3,RM4,RM5,RM6,RM7,RM8,RM9,RM10.

Towns currently served in and around London for Home Visits:
For Wills, Will Writers & Inheritance Tax (IHT) Planning:

Winchmore Hill, Palmers Green, Bounds Green, Southgate, New Southgate,    Friern Barnet, New Barnet, Barnet, Whetstone, Totteridge, North Finchley, Finchley, East Finchley, Hendon, Mill Hill, Edgware, Stanmore, Golders Green, Muswell Hill, Fortis Green, Highgate, Highbury, Islington, Holloway, Stroud Green, Crouch End, Hornsey, Turnpike Lane, Stamford Hill, Clapton, Wood Green, Haringey, Enfield, Edmonton, Tottenham, Walthamstow, Leyton, Leytonstone, Forest Gate, Plaistow, East Ham, Barking, Ilford, Hornchurch, Romford, Hainault, Chigwell, Wanstead, South Woodford, Woodford, Chingford, Buckhurst Hill, Loughton, Waltham Abbey, Waltham Cross, Cheshunt, Broxbourne,  Hoddesdon, Ware, Hertford, Cuffley, Potters Bar. 

For the Raising and Regsistration of Lasting Power of Attorney (LPA) Forms our Home Visit Service  also extends to the following Towns in Essex & Hertfordshire:

Essex: Basildon, Benfleet, Billericay, Braintree, Brentwood, Canvey Island, Chelmsford, Clacton-on-Sea, Colchester, Corringham, Dagenham, Epping,  Frinton-on-Sea, Grays, Great Dunmow, Halstead, Harlow, Harwich, Hornchurch, Ilford, Leigh-on-Sea, Maldon, Ockendon, Ongar, Purfleet, Rayleigh, Romford, Southend-on-Sea, Stanford-le-Hope, Stansted, Thurrock, Tilbury, Walton-on-the-Naze, Westcliff-on-Sea, Wickford, Witham.

Hertfordshire:Abbots Langley, Arlesey, Baldock,Barnet, Bayford, Berkhamsted, Bishop's Stortford, Borehamwood, Brookmans Park, Boxbourne, Buntingford, Bushey, Chalfont St. Peter, Cheshunt, Chorleywood, Codicote, Cuffley, Elstree, Essendon, Flamstead, Goff's Oak, Hadley Wood, Harpenden, Hatfield, Hemel Hempstead, Hertford, Hitchin, Hoddesdon, Kimpton, Kings Langley, Knebworth, Letchworth, London Colney, Northaw, Potters Bar, Radlett, Rickmansworth, Royston, Sawbridgeworth, South Oxhey, St. Albans, Stanstead Abbotts, Stevenage, Tewin, Tring, Ware, Watford, Welham Green, Welwyn, Welwyn Garden City, Wheathampstead. 

For Fixed Fee Probate and Estate Administration:

We have affiliated Fixed Fee Probate Experts available across England and Wales, with the highest choice of Fixed Fee Probate Experts available for the Greater London area and Home Counties, including Essex, Hertfordshire, Middlesex, Berkshire, Buckinghamshire, Surrey and Kent;