Skip to main content

  • Home
  • About Us
    • - About us
    • - Our Team
  • Services
    • - Financial Planning
    • - Protection
    • - Savings & Investments
    • - Business Protection
    • - Mortgages
    • - Equity Release
    • - Pensions
    • - Wealth Management
    • - Taxation

    Professional financial planning is the process which aims to help you realise your ambitions - whatever they may be. As professional financial advisers we can help you make informed decisions about your financial future, in the short, medium and long term.Read More

    There are events we can all face that have the potential to wreck lives and families. It’s a difficult issue to think about, but imagine the impact on you and your family should the main earner in your household die or become seriously ill. It may not happen to you – we hope it doesn’t – but it might.Read More

    Often, people save for a specific reason and it's usually the safest way to build up a pot of money. It’s less risky than investing, but it offers limited growth. The most you'll earn on the money you save is the interest added. Saving is perfect for people who don’t want to take any risks with their money, and most savings accounts have easy access or are for a fixed term.Read More

    Every business needs to protect itself. For most businesses the most valuable asset it has is its people. Without them, a company’s survival could be at serious risk. With that in mind we can help you take the right steps to protect your people and your business.Read More

    Mortgages are loans which are intended to help buyers purchase residential property. When you take out a loan, the lender charges interest: the same is true of a mortgage. A mortgage is a ‘secured’ loan, which means that the loan is secured against the property being purchased until the mortgage is paid off.Read More

    If you're over the age of 55, equity release offers you a way to use the value of your home to raise money. It is advised that you seek Independent Legal advice before entering into a legally binding equity release contract.Read More

    When you retire you still need food and shelter as an absolute minimum, but of course you will want to maintain the lifestyle to which you have become accustomed, so unless you can guarantee a large inheritance or windfall, then you need to provide yourself with a secure income for the rest of your life.Read More

    Most of us face being taxed on our income, our capital gains, and in some circumstances the value of our estate when we die. Taxation can be very complicated and the rules, reliefs and allowances often change, so it is worth obtaining a clear grasp of how these taxes work by discussing with a professional adviser the most efficient way to arrange your finances.Read More

  • Enquiry Forms
    • - General Enquiry
    • - Mortgage Enquiry
    • - Protection Enquiry
    • - Investment Enquiry
    • - Pension Enquiry
    • - Attitude to Risk Profiler
  • Useful links
    • - Research
    • - Market Data
  • Literature
  • Privacy Policy
  • Contact Us
Menu
  • Home
  • About Us
    • About us
    • Our Team
  • Services
    • Financial Planning
    • Protection
    • Savings & Investments
    • Business Protection
    • Mortgages
    • Equity Release
    • Pensions
    • Wealth Management
    • Taxation
  • Enquiry Forms
    • General Enquiry
    • Mortgage Enquiry
    • Protection Enquiry
    • Investment Enquiry
    • Pension Enquiry
    • Attitude to Risk Profiler
  • Useful links
    • Research
    • Market Data
  • Literature
  • Privacy Policy
  • Contact Us
Related Topics
Home    Inheritance Tax

Inheritance Tax

Inheritance Tax (IHT)

The government levies tax on the value of a person’s estate, if their estate is worth more than the Nil Rate Band. The IHT ‘Nil Rate Band’ (NRB) is currently £325,000 (2022/2023) and many people are still getting caught in the trap of property inheritance tax as the threshold has not kept pace with the inflation of property prices, and so is affecting more and more people.

There is also an additional ‘main residence’ allowance (‘Property Nil Rate Band’ (PNRB)) which applies if a person’s home is given to their children (including adopted, foster or stepchildren) or grandchildren. This is set at £175,000 (2022/2023) and is added to the IHT threshold providing a total allowance of £500,000 (2022/2023).

When a relative dies and leaves an estate worth more than £325,000 (2022/2023) or £500,000 (2022/2023) if the ‘main residence’ allowance applies, families are required to pay tax on the amount in excess of the NRB (and PNRB if applicable) within six months. After that, they are charged interest at a rate of 3.5% (2022/2023).

However, there are ways to lessen the burden of property IHT.

When you die, it is likely that you would wish to leave as much as possible for your loved ones. Unfortunately this is often not as simple as you might believe. HM Revenue and Customs (HMRC) will apply 40% tax to the value of your estate over and above that of the NRB (and PNRB) that applies at the time of death.

No IHT is applicable on ‘inter-spousal transfers’ (money/property/assets that is bequeathed by one spouse (or civil partner) to the other.

Your estate could include more than you originally realise. It is often easy to dismiss IHT as something that may not affect you as your property may not be over, or much over, the IHT threshold. However with all your other assets, such as investments, life cover, bank accounts, as well as physical property such as cars, furniture and family heirlooms, many estates are considerably over the threshold without the individuals being aware of it.

For assets passed between spouses and civil partners, the nil rate band allowance will pass along with the assets. This gives a couple available allowances (nil rate bands) of up to £650,000 (2022/2023), which increases to £1,000,000 (2022/2023) with the addition of the ‘main residence’ allowance detailed above.

For further information about the 2022 Budget changes please click here.

Tax treatment varies according to individual circumstances and is subject to change.
The financial conduct authority does not regulate advice on estate planning
The financial conduct authority does not regulate some forms of taxation.

GENERAL ENQUIRY FORM

Marketing Information

Submit your Information

From time to time, we would like to contact you about our products and services which we think you might be interested in. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you.

Email
Telephone
Post
Yes please, I'd like to hear about offers and services.
No thanks, I don't want to hear about offers and services.
Please tick this box to confirm you have read and understood our privacy policy.

Inheritance Tax (IHT)

The government levies tax on the value of a person’s estate, if their estate is worth more than the Nil Rate Band. The IHT ‘Nil Rate Band’ (NRB) is currently £325,000 (2022/2023) and many people are still getting caught in the trap of property inheritance tax as the threshold has not kept pace with the inflation of property prices, and so is affecting more and more people.

There is also an additional ‘main residence’ allowance (‘Property Nil Rate Band’ (PNRB)) which applies if a person’s home is given to their children (including adopted, foster or stepchildren) or grandchildren. This is set at £175,000 (2022/2023) and is added to the IHT threshold providing a total allowance of £500,000 (2022/2023).

When a relative dies and leaves an estate worth more than £325,000 (2022/2023) or £500,000 (2022/2023) if the ‘main residence’ allowance applies, families are required to pay tax on the amount in excess of the NRB (and PNRB if applicable) within six months. After that, they are charged interest at a rate of 3.5% (2022/2023).

However, there are ways to lessen the burden of property IHT.

When you die, it is likely that you would wish to leave as much as possible for your loved ones. Unfortunately this is often not as simple as you might believe. HM Revenue and Customs (HMRC) will apply 40% tax to the value of your estate over and above that of the NRB (and PNRB) that applies at the time of death.

No IHT is applicable on ‘inter-spousal transfers’ (money/property/assets that is bequeathed by one spouse (or civil partner) to the other.

Your estate could include more than you originally realise. It is often easy to dismiss IHT as something that may not affect you as your property may not be over, or much over, the IHT threshold. However with all your other assets, such as investments, life cover, bank accounts, as well as physical property such as cars, furniture and family heirlooms, many estates are considerably over the threshold without the individuals being aware of it.

For assets passed between spouses and civil partners, the nil rate band allowance will pass along with the assets. This gives a couple available allowances (nil rate bands) of up to £650,000 (2022/2023), which increases to £1,000,000 (2022/2023) with the addition of the ‘main residence’ allowance detailed above.

For further information about the 2022 Budget changes please click here.

Tax treatment varies according to individual circumstances and is subject to change.
The financial conduct authority does not regulate advice on estate planning
The financial conduct authority does not regulate some forms of taxation.

GENERAL ENQUIRY FORM

Marketing Information

Submit your Information

From time to time, we would like to contact you about our products and services which we think you might be interested in. If you consent to us contacting you for this purpose please tick to say how you would like us to contact you.

Email
Telephone
Post
Yes please, I'd like to hear about offers and services.
No thanks, I don't want to hear about offers and services.
Please tick this box to confirm you have read and understood our privacy policy.

Read less

Wealth Management

Business Protection

Financial Planning

QUICK LINKS

  • Home
  • About Us
  • Our Team
  • Research Links
  • Privacy Policy
  • Contact Us

REQUEST A CALL BACK

NEWSLETTER

CONTACT US

Clearwater Financial Planning Ltd
56 Fore Street
Kingsbridge
Devon
TQ7 1NY
T: 01548 856096
Email Us

Tax Planning is not regulated by the Financial Conduct Authority.

Clearwater Financial Planning Ltd is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority. Quilter Financial Services Limited and Quilter Mortgage Planning Limited are entered on the FCA register (https://register.fca.org.uk/s) under reference 440703 and 440718.

Clearwater Financial Planning is registered in England and Wales, No. 05764001. Registered Office: 56 Fore Street, Kingsbridge, Devon, TQ7 1NY.

The guidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

© Copyright 2022 - Adviser Pro - All Rights Reserved

Design and Developed by Adviser Pro © 2022