Inheritance Tax (IHT) and Inheritance Tax Planning

Inheritance Tax Planning allows you to pass on more of your estate to your loved ones, and not to the tax man. The law allows you to leave an estate worth up to £300,000 (2007/2008) without having to pay any Inheritance Tax upon it. This £300,000 is called the 'Nil Rate Band'. After the first £300,000, or the Nil Rate Band, the remainder of your estate will be charged 40% Inheritance Tax.

From 9 October 2007, spouses and civil partners can transfer their Nil Rate Band allowances so that any part of the Nil Rate Band that was not used when the first spouse or civil partner died is transferred to the individual's surviving spouse or civil partner for use on their death.

The transferable allowance is available to all survivors of a marriage or civil partnership who die on or after 9 October 2007, no matter when the first partner died/dies.

The increased Nil Rate Band does not replace the single Nil Rate Band available to the survivor that determines whether or not their estate is an excepted estate.

Rowlington Tilley's will writing services (serving Herts, BUcks, and Beds) will help you with Inheritance Tax planning to ensure that your estate pays as little tax as possible, leaving more for your loved ones.