Inheritance Tax Advisors
- A highly experienced team of inheritance tax advisors and specialists
- Free, no-obligation consultation at one of our offices
- Providing inheritance tax planning advice nationwide and locally in Dorset
Inheritance Tax (IHT) Planning Advice
Inheritance tax planning advice helps individuals structure their estates in a way that minimises tax liabilities and ensures a smooth transition of wealth to their heirs. Our comprehensive estate planning services provide strategies for effective wealth transfer while considering all potential tax relief options.
IHT is mainly charged on death. Your total wealth plus all gifts made in the previous seven years is taxable. This total is reduced by a nil rate band (NRB). If your spouse has predeceased you, you may have their NRB as well. Depending on the size of your estate and the terms of your will, your estate may also benefit from an extra residence nil rate band. Consulting an inheritance tax advisor is essential to develop a comprehensive estate planning strategy. An inheritance tax advisor brings in-depth knowledge of tax regulations, relief options, family wealth management, and strategic planning to minimise liabilities. They can help ensure your wealth is preserved and effectively transferred to future generations. They assist by analysing your assets, identifying opportunities for relief, and ensuring that your estate is structured to pass on the maximum value to your beneficiaries.
You do not have to be an entrepreneur to use Business Property Relief (BPR). Portfolios of AIM shares can qualify for BPR and so escape IHT – once held for two years. An inheritance tax advisor can provide independent financial advice to ensure you are making the best choices to minimise your tax liability and protect your estate. Effective financial planning can help you take full advantage of Business Property Relief and other opportunities for tax efficiency.
Ward Goodman are inheritance tax planning advisors, offering expert and professional advice for Inheritance Tax (IHT) in those difficult times. Our goal is to provide effective estate planning and family wealth management strategies, so you can focus on your loved ones without the stress of complex tax matters. For example, we can help you understand complex relief options, prepare necessary documentation, and plan effectively to ensure a smooth transition, reducing the stress and burden on your family.
IHT Calculator
The calculator estimates whether your estate may be subject to inheritance tax if you were to die today. Please note that it is a general guide and does not account for every detail or exception within the inheritance tax rules. For a detailed understanding of how inheritance tax might apply to you, we strongly recommend seeking professional advice.
This information is believed to be accurate as of 5 December 2024. However, tax rules can change, and the impact on your estate will depend on your unique circumstances.
For personalised inheritance tax advice, contact the experts here at Ward Goodman. Our team is here to help you navigate the complexities of inheritance tax and plan effectively for your estate. Contact us today or call 01202 875 900.
What You Own (Assets)
What You Owe (Liabilities)
*** Since each situation is unique, we recommend reaching out to our team of specialists for a more accurate forecast tailored to your specific needs.
Understanding Your Tax-Free Allowances
NRB (Nil Rate Band): This is the standard inheritance tax-free allowance of £325,000, which applies to all estates, regardless of how the assets are distributed. Any amount above this threshold may be subject to inheritance tax at 40%.
RNRB (Residence Nil Rate Band): This additional allowance of £175,000 applies specifically to the value of a property left to direct descendants, such as children or grandchildren. If your estate exceeds £2 million, the RNRB is tapered down at a rate of £1 for every £2 over the threshold, and it may be reduced to £0 for larger estates.
How Our Inheritance Tax Advisors Can Help
Ward Goodman are inheritance tax planning advisors, offering expert and professional advice for Inheritance Tax (IHT) in those difficult times to make sure you as the client can focus on your loved ones.
Gift Giving
Lifetime gifting saves significant amounts of IHT, but some lifetime gifts trigger immediate IHT charges
Potentially Exempt Transfers (PET)
Many gifts of cash to individuals are Potentially Exempt Transfers (PET). These only count for IHT if you die within 7 years of making the gift.
Dedicated Inheritance Tax Advisor
Regular communication with clients taking their businesses forward
Bespoke Packages
Services tailored to maximise profit and minimise tax for clients.
Hear What Our Clients Have To Say
Ward Goodman consistently delivers exceptional service, exceeding the expectations of our valued tax planning clients.
Useful Things To Know About Inheritance Tax Planning
It’s well known that lifetime gifting saves significant amounts of IHT, but you must also consider the associated loss of income. Trying to give away an asset but still keep its income is usually ineffective. Consulting an inheritance tax advisor can help you navigate these complexities, such as understanding the implications of gifting assets while considering Capital Gains Tax (CGT) versus Inheritance Tax (IHT). They can also guide you through wealth management and effective estate planning to make informed decisions, protecting your financial legacy.
Some lifetime gifts trigger immediate IHT charges. Lifetime gifts to trusts, to close companies, or other non-qualifying groups are all taxable, but only if they exceed your nil rate band. An inheritance tax specialist from Ward Goodman can provide expert guidance on how to manage these gifts effectively. For example, if you are considering making a gift to a trust, which can trigger immediate IHT charges if it exceeds your nil rate band, Ward Goodman can help you structure the gift to minimise these charges or explore alternative strategies to reduce the tax burden.
Most other gifts of cash to individuals are Potentially Exempt Transfers (PET). These only count for IHT if you die within 7 years of making the gift. If you survive for longer, the gift is ignored. Annual exemptions and other reliefs protect many lifetime gifts. Alternatively, Ward Goodman Financial Services (WGFS) may arrange insurance cover to protect your estate if that is suitable for you. Inheritance tax advisors can help you determine the best strategies for your situation.
Gifting assets is more complicated than giving cash. A lifetime direct gift to your family is potentially exempt for IHT, but you have to consider CGT – which is payable in lifetime. CGT is ‘cheaper’ than IHT because it typically incurs lower tax rates and is payable during the individual’s lifetime, which allows for better planning. It can be mitigated with the right inheritance tax planning advice from an inheritance tax advisor, who can help structure gifts to minimise tax exposure effectively.
Frequently Asked Quetions
Common questions on tax planning advice.
What are the basics on inheritance tax?
IHT is charged at 40% on your total wealth when you die. This includes all gifts made in the seven years before death. A £325,000 nil rate band (NRB) is taken off the taxable value. If your spouse has predeceased you and left everything to you, you can use their NRB as well. If your will leaves your home to your children or grandchildren then your estate may benefit from extra tax-free slices called a property allowance. The property allowance is not available for larger estates.
Lifetime gifts that are neither to individuals nor to exempt bodies such as political parties or charities, are chargeable to IHT when made, at 20%. Thus, lifetime gifts to trusts, or to close companies, or to non-charitable campaign groups are taxable, but only if they exceed your nil rate band.
Giving cash away does not count for CGT but the gift is a Potentially Exempt Transfer (PET). It will be counted in your estate for IHT if you die within 7 years of making the gift. If you survive for longer the gift is ignored. There are annual exemptions and other allowances which can shelter lifetime gifts.
If IHT could be due on a significant gift then you may consider talking to WGFS to arrange insurance coverage to protect your estate
Alternatively, if you can prove your gifts came out of spare income then they do not count at all for IHT. It is worth seeking advice to see if this can work for you.
Can I give my house to my child to avoid inheritance tax?
Transferring your house to your child can have implications for inheritance tax (IHT) in the UK. While it’s possible to give your house to your child, it may not necessarily avoid inheritance tax entirely.
How much can you inherit from parents without paying inheritance tax in the UK?
As of January 2022, individuals can inherit up to £325,000 tax-free from parents, known as the “nil-rate band.” If the estate surpasses this, a 40% tax rate applies to the excess. Certain exemptions can alter the tax owed.
The Process
Initial referral or inquiry
Whether you’ve been referred or inquired yourself, our team will reach out to you in a timely manner
Free consultation
We offer a no-cost, no-obligation meeting at one of our offices, or over the phone
Quote and setup
We’ll provide you with a tailored quote and when you’re ready, our inheritance tax advisors will begin services
Book a Meeting
If you would like to discuss further, please book a meeting with an experienced member of our team. Simply let us know when’s best for you and we will get in touch to arrange a suitable time.
Why Choose Ward Goodman?
Client satisfaction is paramount to us. We have a broad range of clients, and we endeavour to offer them the best service possible through continuous improvement and focus on doing things right the first time.
Experienced Inheritance Tax Advisors
Our Dorset-based inheritance tax advisors support those locally or further afield.
Bespoke Advice Packages
Flexible, bespoke service covering all aspects of tax planning.
Access to a Full Team of Finance Experts
From our Pension Advisors to independent Financial Planners.
Our Awards and Accreditations
Ward Goodman’s excellence in accounting and tax advice is validated by notable awards and accreditations within the UK financial industry.
AAT Qualified
Xero Certified
ICAEW Membership
Partnerships
Ward Goodman’s Inheritance Tax Advisors
Ward Goodman’s dedication to excellence is embodied through our team of helpful experts:
Davina Seymour
Bookkeeper
Torie Freestone
Trainee Client Services Manager
Anthony Boni
Trainee Client Services Manager
Other Services You May Be Interested In
IHT is mainly charged on death. Your total wealth plus all gifts made in the previous seven years is taxable. This total is reduced by a nil rate band (NRB).
Are you buying residential or commercial property, or advising clients who are making property transactions?
If you are running a business, you will be involved with a wide range of taxation obligations.
