Estate Tax Planning
Inheritance Tax is charged on the value of assets you own at the date of your death. If at that time, the total value of your assets, including your share of the joint assets, exceeds a certain threshold figure then the excess will be charged at 40%.
Capital Gains Tax is a tax charged on profits made on the transfer of capital assets such as property or stocks and shares. As with Inheritance Tax certain reliefs and exemptions apply.
In addition to IHT and CGT, Estate Planning also takes into account Income Tax and Corporation Tax and considers the wider issue of Wealth Management.
It is always worth considering whether there are any ways to reduce your potential tax liability.
- Could you transfer an income-producing asset to your spouse
whose liability to Income Tax is lower than yours?
- Are there any losses that you could use to reduce profits
on the sale of a capital asset and thereby reduce your
liability to Capital Gains Tax?
- Can you give away assets to reduce the size of your estate
and thereby reduce your liability to Inheritance Tax?
- Does your Will make the best use of your permitted
threshold - the Nil Rate Band?
- Have you considered a Discretionary Trust or other trust?
- Would a Deed of Family Arrangement or Deed of Variation help?
