MT Legal Services
MT Legal Services

Inheritance Tax

Home Inheritance Tax

Concerned About Inheritance Tax?

Legislation surrounding inheritance tax (IHT) can be difficult to understand, and if not correctly followed could lead to large tax bills being passed on to the inheriting parties. MT Legal Services can assist and guide you on inheritance tax and estate planning.

If you are concerned about the implications of IHT, and wish to pass as much of your estate as possible to your chosen beneficiaries, we can help to implement a strategy to ensure long term financial security for you and your family. Forward planning around inheritance tax can reduce the tax you pay, thus protecting the wealth that rightly belongs to you and your family.

Inheritance Tax Planning

Inheritance Tax: FAQs

What is Inheritance Tax?

Inheritance Tax (IHT) is a tax on the estate of someone who has died, including all property, possessions and money.

MT Legal Services will ensure that your money, your property and your Will are all structured to manage any inheritance issues that may arise.

Are there any exemptions or relief from Inheritance Tax?

Some gifts and property are exempt from Inheritance Tax (IHT), such as some wedding gifts and charitable donations. Relief might also be available on certain types of property such as farms and business assets.

If the person who died gave a gift in the seven years before they died, it’s counted as part of the estate, and likely to incur IHT.

How much tax is due depends on the value of the gift, when it was given and to whom.

How can I reduce the amount of tax paid?

Trying to reduce how much IHT is due on an estate is complicated. But, in short, you can reduce how much tax is paid through various measures:

  • Leaving a legacy to charity
  • Putting your assets into a trust for your heirs
  • Leaving your estate to your spouse or civil partner
  • Paying into a pension instead of a savings account
  • Regularly giving away up to £3,000 a year in gifts

What other taxes do my heirs have to pay on their inheritance?

Your estate is only distributed after debts (if there are any) and Inheritance Tax is paid. Depending on what your heirs inherit, the taxes that might also incur are:

  • Income Tax – if what is inherited produces a regular income; such as share dividends or rent from a property
  • Capital Gains Tax – if the inheritance is sold (e.g. property) for more money than what it was worth when you died

How much they have to pay depends on whether they pay Income Tax at the basic or higher rate.

If you’ve put your assets into a trust or you’re thinking about doing this, how much tax and what kind of tax they have to pay can get vary. Please contact us for advice and information.

Protect your wealth!

MT Legal Services will ensure that your money, your property and your Will are all structured to manage any inheritance tax issues that may arise. We can also provide support for Executors/Administrators who are having issues reporting an estate to HM Revenue & Customs where IHT is payable. Please contact us for your FREE consultation.