Whilst taxes are inevitable, reviewing the amount of tax you are being seemingly required to pay is something we should all undertake regularly.
Working with our two chartered tax advisors, one of whom has spent time working in three of the “Big 4” accountancy and tax advisory firms, we can help you to ascertain whether your tax affairs are in order both now and when you pass away.
If, when someone dies, the value of their assets exceeds a certain threshold (the nil rate band), inheritance tax is payable on their estate at 40%. It’s also sometimes payable on gifts or transfers made during their lifetime. What’s more, in most cases, it is payable before any assets are distributed.
The basic nil rate band for the 2020/2021 tax year is £325,000 and is currently fixed until 2021. Since October 2007, married couples and registered civil partners can effectively increase the threshold on their estate when the second partner dies, by as much as double (£650,000). With the advent of the residence nil rate band, further inheritance tax savings are available.
Very few clients want to pay tax to the treasury. Even fewer would like to leave the burden of inheritance tax to their children or other beneficiaries and there a diverse range of planning options available. By carefully organising your assets, and without having to lock them so tightly you cannot access them, we can minimise or even completely avoid any inheritance tax due on your estate.
Hutchinson Legal & Associates Limited specialise in advising clients whose affairs are a little less straightforward: from those who may live abroad or who have assets abroad; to those who have buy to let property portfolios; those who have companies to those who are dealing with the affairs of someone who has passed away and inheritance tax is due Whatever your circumstances, we will undertake a review of the current circumstances and offer a range of potential solutions.
Lifetime tax planning can often take a number of years to come into effect and, therefore, it is vital that if tax is of concern, that the situation is addressed sooner rather than later.