IHT is payable on your wealth, so if you are willing and able to give away your wealth your IHT liability will decrease…if only it was so simple!
Few of us are in a position to give everything away in one go, but IHT savings can be achieved by a combination of elements, as follows:
Annual exemption – We can each give away up to £3,000 per tax year, more in specific circumstances such as marriage, without any IHT implications. Any unused exemption can be carried forward to the following tax year but not beyond.
Utilising the nil rate band – Every individual is entitled to a IHT threshold currently £325,000. The threshold is renewed every seven years. So, if it is possible, giving away value of up to this amount every seven years whilst you are in good health can achieve a significant IHT saving.
The IHT savings may be doubled if married couples (or civil partners) both make use of these elements.
For more information, please contact Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.