Inheritance Tax (IHT) used to be a problem just for the very rich. However as property prices continue to increase more and more people are finding themselves worrying about paying "Death Duties".

In recent years there have moderate increases in the threshold at which IHT becomes payable - from April 2007 the figure is £300,000 but at the same time there has been substantial increases in the property price leaving many more people liable to tax that they never had to worry about before.

Every year the Treasury receives £2billion in inheritance taxes, and this figure is increasing annually. In many cases this burden can be greatly reduced, or even prevented, by good planning.

Individuals each have an allowance of £300,000 which can die with them if not properly dealt with in the Will. It is possible to draw up Wills enabling couples to use both of their allowances and pass £6000,000 free of IHT.

However this valuable opportunity is lost when one of you dies. Also there are occasions when lifetime gifts are free of tax, and gifts made seven or more years before death are also exempt.

This is a complex area with several methods available, depending on individual circumstances, so early planning is essential. essential. For more advice or to make an appointment contact us.