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Inheritance
Tax is a
main stream tax, not just one for the super rich.
Few people who actually enjoy paying tax, but of all the
forms of taxation Inheritance Tax is probably the most
uniformly despised. It is a tax on the assets of a deceased
person, assets accumulated from income and gains that have
usually already been taxed and so in a very real sense this
represents double taxation.
In fact the 'Rich' have always been able to plan to mitigate
their liabilities. Nowadays more than 4M people in the UK
could well be affected by this tax. The recent increase in
property values is one of the main considerations, and one
of the most difficult to overcome. If your estate is over
£285,000 (2006-2007), then it’s time to plan.
Rising house prices mean that more and more people are
finding they are affected - people who didn't think they
were 'rich' now are.
Everything you own is taken into account: not just your
house, but all your house contents - furniture, jewellery
and so on, your car and your investments. At the time of
probate you should make sure the valuations are “fair
market”, i.e. what it/they can be sold for, not the value
for insurance, which is usually much higher.
All your investments will also be taken into account.
Remember that tax free investments such as Tessa's and PEP's
will be valued at full market price and cease to be tax
free.
Inheritance tax will be charged if it adds up to more than
£285,000 (2006-2007). The annual threshold increase does not
reflect the likely increase in the value of your estate,
particularly the value of property. The increase for
2006/2007 is just £10,000, or 3.6% on the previous year;
compare that to current increases in property prices!
We hope
these pages will assist you in ensuring the fruits of your
labour do not just go to waste
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Budget 2006 - 22nd March - IHT
Implications and changes
Inheritance tax for
trusts
..link
These
new rules could have a significant impact on
IIP trusts & PETs
also see RSS Feed
Simplification of IHT on Pensions
...link
more on ASP and IHT
...Here |
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