Skipton Financial Services
Tuesday, October 31, 2017 - 11:11

Will I have to pay inheritance tax?

Many people ask the all-important question: will I have to pay inheritance tax?

Firstly, if you have an inheritance tax liability, it won’t be you who has to pay it. It will be the executor of your estate – which is typically your loved ones.

Inheritance tax depends on the total of your overall estate (ie your property, savings and investments, car, jewellery and household furnishings – minus any liabilities).

If your estate exceeds the inheritance tax nil rate band upon your death, any amount above it will be taxed at 40% – which your beneficiaries could have to pay within the first six months of your death.

An inheritance tax bill can typically equate to thousands of pounds. So finding this amount of money over a short period could no doubt cause your family considerable stress at what would already be a difficult time.

But inheritance tax doesn’t have to be all doom and gloom. The good thing is you may have the chance to do something about it if you act soon enough. There are numerous solutions available and by putting the right financial plans in place now, you can potentially reduce as much of your liability as possible.

Here to help you and your family

Inheritance tax is a complex matter, yet the decisions you make are crucial. So it’s important to seek advice and support where possible when tackling your liability.

Fortunately we’re on hand to help you with your potential problem through straightforward, face-to-face advice.

First of all, we can establish whether you may be affected by inheritance tax. And if necessary, we can discuss your situation and offer personalised recommendations for you to consider.

By turning to us for help addressing your inheritance tax liability, we can put plans in place. That way, you can have peace of mind knowing your loved ones could be left with a stronger legacy; not a financial headache.

Inheritance tax planning solutions may put your capital at risk so you may get back less than you originally invested. IHT thresholds depend on your individual circumstances and prevailing legislation, both of which may change in the future. Some areas of inheritance tax planning are not regulated by the Financial Conduct Authority.

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What is Inheritance Tax?

Inheritance tax applies if the value of your estate exceeds the existing nil rate band upon your death – and everything above this will be charged at up to 40% to your loved ones.

How might your loved ones be affected by inheritance tax?

If, upon your death, your estate is liable for inheritance tax, sadly your loved ones will be unable to inherit what you’ve left behind until they’ve settled the outstanding IHT bill.