Legal Services

Inheritance Tax Planning

More and more people are concerned about the level of Inheritance tax that will be payable on their death. The current threshold (also known as the Nil Rate Band), £325,000 and a tax rate of 40% is payable on an amount above the Nil Rate Band.

There are exemptions and reliefs available which means that most people can completely avoid, or at least significantly reduce any Inheritance Tax liability for their family. Certain assets can attract relief and avoidance, depending upon your circumstances.

What is Inheritance Tax?

UK inheritance tax pertains to a levy on moneys and property gained through gifts or inheritance. It was introduced in 1986 to replace the outgoing Capital Transfer Tax and has since undergone changes almost annually to the threshold over which inheritance tax applies. For example, the threshold for paying inheritance tax was raised on 6th April 2009 to apply only to sums of £325,000 and over. For detailed information on who should pay inheritance tax and when, please visit the Births, Deaths, Marriages and Care section of the website.

Help With Inheritance Tax

If you are concerned about paying Inheritance Tax and would like help to understand how it can be managed effectively, reduced or even avoided altogether, please contact our offices in Windermere (015394 46585) and Kendal on (01539 721945), or use our online enquiry form for a free review.

  • Lifetime Giving more

    Outright gifts will be exempt from Inheritance Tax if you succeed in surviving 7 years from the date of the gift. There are also exemptions of £3000 per annum and on marriage of up to £5000. It is also possible to exempt regular payments made out of surplus income provided suitable records are kept.

  • Charitable Giving more

    This not only reduces Inheritance Tax on your death but if given during life can benefit from Gift Aid which effectively increases the size of the gift in the hands of the charity. It also gives you a tax credit for any higher rate tax payable.

  • Inheritance Tax Free Investments more

    Investment Products have now been developed to make use of Business Property Relief and some of these can be relatively low risk whilst still allowing access to your capital and giving 100% Inheritance Tax relief after just two years. An interest in a business and agricultural land and buildings normally qualify from 100% relief from Inheritance Tax after just 2 years of ownership.

  • Planning Via Your Will more

    This can be highly effective at substantially reducing Inheritance Tax liabilities for your estates and for future generations. The most popular arrangement is what we call Family Pilot Trusts which can save tax on your death if you hold at least some agricultural or business assets (even if just a qualifying investment). Additionally the Family Pilot Trusts arrangement avoids your capital being subject to Inheritance Tax on the deaths of your heirs and subsequent generations. Find out more about how to make a will.

  • Marriage and Civil Partnership Gifts more

    Monetary gifts to a couple getting married or registering themselves in a civil partnership are entitled to Inheritance Tax exemption, up to a certain amount.

  • Inheritance Tax - A Case Study more

    Bill and Maureen asked for our advice on Inheritance Tax Planning. Maureen's mother had died the previous year and Maureen inherited £250,000. We were able to draft documentation for her resulting in an eventual tax saving on her death of £100,000.

    Bill and Maureen's own estate totalled about £1.2m. They invested £50,000 each in Inheritance Tax free investments which, when combined with the provisions of their wills, could result in an Inheritance Tax saving of up to £60,000 on their deaths.

    We also prepared new wills including family trusts for them which will result in saving £260,000 of Inheritance Tax on their children's eventual deaths.

Free Enquiries

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Contact Details

Kendal Office: 114–116 Stricklandgate, Kendal , LA9 4QA T: 01539 721945

Windermere Office: 25 Crescent Road, Windermere, LA23 1BJ T: 015394 46585

Kirkby Lonsdale Office: 29 Main Street, Kirkby Lonsdale, LA6 2AH T: 015242 71222

J36 Rural Auction Centre: Crooklands, Milnthorpe, LA7 7FP T: 015395 67571

Financial Services: 114–116 Stricklandgate, Kendal , LA9 4QA T: 01539 815746