Inheritance tax can take a significant portion of your estate if not planned for in advance. In the UK, the standard rate is 40% on the value above the nil-rate band. Careful inheritance tax planning UK can help protect your wealth for your loved ones.

Use Your Allowances and Exemptions

Every individual has a tax-free threshold of £325,000, plus a residence nil-rate band if passing a home to direct descendants. Make full use of these allowances to reduce liability.

·        Annual gift allowance of £3,000

·        Small gifts of up to £250 per person per year

·        Wedding gifts (up to £5,000 for children)

·        Regular gifts from surplus income

Make Gifts Early

Gifting assets more than seven years before death removes them from your estate for tax purposes. Early action is crucial for effective inheritance tax planning UK.

Set Up Trusts

Trusts allow you to pass on assets while retaining some control over them. They can reduce the taxable value of your estate and protect assets for future generations.

Leave Money to Charity

Donations to registered charities are exempt from inheritance tax, and if you leave at least 10% of your estate to charity, the tax rate on the rest drops from 40% to 36%.

Consider Life Insurance

A life insurance policy written in trust can provide funds to cover any inheritance tax bill, preventing heirs from needing to sell assets quickly.

IWC Helps in Inheritance Tax Planning UK

IWC offers expert guidance on inheritance tax planning UK, ensuring you use every legal route to minimise tax liability. With years of experience, they provide tailored strategies, from gifting and trusts to will structuring. Their team’s professional approach helps safeguard your estate, keeping more wealth within your family and easing the financial burden on future generations.