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Wealth Planning Advice for Private Clients

Inheritance Tax Planning


Whilst Inheritance Tax used to be a duty paid only by the wealthy, rising house prices means it now affects more people than ever before.

When you pass away the government assess how much you are worth (your 'estate'). They take into account the value of your home, your business, any investments you hold, as well as any valuable items you may have. If the total amount of your estate exceeds £325,000, then any amount above that figure is taxed at 40%. From April 2012 the amount of tax payable reduced to 36% if you leave at least 10% of your estate to charity.

It's a tax that many people begrudge paying.

There are steps you can take which will reduce the amount of money your beneficiaries have to pay if Inheritance Tax affects you.  

These include putting money into trust or gifting the money to others, so long as those gifts are within allowances set by Her Majesty’s Revenue and Customs (HMRC). Whichever way you decide to approach estate planning, the earlier you take action the better chance you have of reducing the Inheritance Tax liability on your estate. This means more of your money is passed onto your loved ones in the future, and less is lost in tax.

The rules on Inheritance Tax can become complicated and it is important that you seek legal and wealth planning advice in your planning.

To discuss your Inheritance Tax planning needs in detail click on the contact us box to the right to arrange an appointment with a Sanlam Wealth Planner.

All investments carry risk, although the amount of risk, or the type of risk may vary considerably.  For example, the risk may be that the value of your investment fails to keep pace with inflation, or that in trying to achieve growth in excess of inflation, the value of your investment can both rise and fall. Depending on the type of investment made, you may lose some, or all of your capital.
 
We would recommend that you only take as much investment risk as necessary to achieve your financial objectives; but never more than you are comfortable with.
 
Any tax treatment is dependent upon individual client circumstances and may be subject to change. The Financial Conduct Authority (FCA) does not regulate taxation and trust advice or legal advice. 

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.