You may not think inheritance tax will be an issue for you and your family but with property prices so high and the tax limit set at £325,000 for many years it’s important you think about it and plan ahead.
Here at Manchester accountants, The Accountancy People, we know it’s an unpopular tax because the money has already been taxed and the IHT rate is high at 40%. People just like you can end up paying the tax unless you plan ahead.
On top of the £325,000, a £175,00 allowance for your house is being phased in from 2016 – but your family could still be affected.
The good news is that with careful planning there are many opportunities for reducing or even avoiding inheritance tax. The simplest exemptions are:
- Gifts made within 7 years of death
- Business property
If you want to know how inheritance tax might affect you or your family please get in touch.