With the value of family homes now routinely being more than the PS325,000 inheritance tax
relief threshold, it has become an issue for the majority rather than the few.
6 million for the month, bringing year-to-date inheritance tax
revenue to $100.
Figures from HMRC show around 300 estates, including 130 in Birmingham, 100 in Solihull, 40 in Dudley and 30 in Wolverhampton, along with less than 10 in each of the other parts of the Birmingham area, paid inheritance tax
Some simple steps can greatly reduce future inheritance tax
In London, the potential impact on an inheritance tax
bill is even more marked with an average house price of PS458,000.
If you have inherited properties or assets in Spain within the last four years and either you or the deceased were non residents in Spain at the time of death, you may be able to recover almost 100 per cent of the inheritance tax
paid to the Spanish tax office.
A report by Close Brothers Asset Management shows a third of people are oblivious to the need to plan for inheritance tax
He explains that inheritance tax
is levied at a rate of 40% on assets exceeding the nil rate band of PS325,000 per person.
Where an individual's net estate exceeds the nil rate band of PS325,000 (PS650,000 for married couples) on death, Inheritance Tax
of 40% is levied on that excess.
Indeed it seems to me an avoidable problem that if you employ tax consultants to avoid inheritance tax
, which of course the seriously rich are very good at.
The Chancellor has confirmed that the threshold for inheritance tax
will be frozen at Au325,000 per person until 2018.
A If your mother's total estate (including the value of the house) is likely to exceed the inheritance tax
threshold, then charging her a market rent may be an alternative to paying inheritance tax
at 40% on any amount above the threshold.