INHERITANCE TAX PLANNING
Surprising as it may be, many people pay 40% Tax on their family's future inheritance! THE GOOD NEWS is that you don't have to!
Over the last ten years the amount of Inheritance tax being paid by UK, taxpayers has almost doubled from £1.2 billion to 2.3billion (quote the Consumers Association). Inheritance tax used to be known as the wealth tax but you do not have to be wealthy to pay it now. The huge rise in property values means many middle-income families own assets worth more than the amount you can pass as a legacy without paying inheritance tax, this is called the nil rate band.
For example, if you own a modest home, value £120.000 - have insurance policies, with a modest sum assured of £65.000- death in service at your work at 4x £25.000 salary = £100.000- and some investments including building society accounts with an overall value £50.000 your assets total £335.000. Everything above the current nil rate band is paid at a colossal 40%!
| £120,000 | Home |
| £65,000 | Insurance policies |
| £100,000 | 4x £25.000 death in service |
| £50,000 | Savings & investments |
| £335,000 | TOTAL |
The GOOD NEWS is that an INHERITANCE TAX WILL can quite legally save your family losing 40% tax on their inheritance.