Independent financial adviser to personal and corporate clients

Inheritance Tax - The Facts

"In this world nothing can be said to be certain, except death and taxes." - Benjamin Franklin in a letter to Jean-Baptiste Leroy in 1789.

Inheritance Tax (IHT) used to be a tax that only affected the very wealthy, but soaring property prices have pushed more and more people over the IHT threshold and this trend is likely to continue in the future. IHT is now a significant revenue generator for the government with £3.3 billion being paid in IHT last year by 37,000 people with an average tax bill of more than £89,000. This is up by 14% when compared to the previous year.

After your death, the government apply a tax charge of 40% on the value of your estate’s assets above the Nil Rate Band (NRB) (£312,000 in 2008/2009 tax year). The good news is that with careful planning, it is possible to avoid or significantly reduce the amount of IHT your estate will have to pay.

Professional and independent financial advice when seeking to manage your IHT liability is, in our view, essential. Moore Stephens Financial Services will be pleased to work with your Accountant and help you to plan in a number of ways. We can:

• Help you to value your estate for IHT purposes;
• Estimate your potential IHT liability;
• Explain the options available to you;
• Assist in the preparation and implementation of an appropriate strategy;
• Review your plans with you periodically