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Inheritance Tax
At Armstrong Watson we take an holistic approach to Inheritance Tax planning by combining the expertise of our tax specialists and financial planning consultants to provide the right solution for our clients. It is not a ‘one size fits all’ approach but rather a case of first understanding your needs and then formulating a bespoke solution.
The dramatic increase in property values in recent years has brought many more ordinary families within the Inheritance Tax net. In 1997 the Inheritance Tax threshold was £210,000; today it is £300,000, with the tax rate unchanged at 40% on the excess. The increase in the threshold has failed to keep pace with property values and, as a result, many more families are paying Inheritance Tax.
The Inheritance Tax changes announced in the October 2007 Pre-Budget Report are to be welcomed and potentially eliminate the IHT issue for married couples and civil partners with combined assets of up to £600,000. The key change is the ability to transfer any unused nil-rate band on the first death to the surviving spouse or civil partner.
In spite of these changes Inheritance Tax is still a serious tax for many people who should continue to focus on lifetime planning to mitigate the tax. Contact one of our Inheritance Tax specialists for advice on your personal situation.