Inheritance tax is hanging over more and more of us each year. This is largely due to the rise in residential property values. The current IHT allowance is £300,000 (2006/2007 £285,000). Depending on the value of your house and other assets this may not be that big an allowance. If you die leaving an estate worth more than £300,000 (2006/2007 £285,000) and you have no spouse your estate will come in for IHT at 40% on the balance.

Even if you do have a spouse to inherit then this only puts off the time when tax will be payable because he or she will also pass away one day. It is worth doing some forward planning with a tax adviser to decide whether it would be appropriate to gift some of your estate, perhaps to children or other relatives, during your lifetime; or possibly redirect assets up to the value of the nil rate band into a trust on death.

One thing is for sure with all forms of tax; if you do nothing the government will use its considerable powers to make sure a share of your hard earned wealth ends up in their coffers.

Levels, and bases of, and relief's from taxation are subject to change.

Fraser Heath has developed a special strategy that is suitable for asset rich clients to help reduce their IHT liability. We have named the strategy Equilibrium. If you would like to know more please contact us but for a brief overview please see our brochure by clicking on the Equilibrium PDF file.

Inheritance Tax Improvement		Download
IHT newsletter July 2007		Download
Equilibrium		Download
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