1 / 2

Best Methods to Inherit Money without Paying Tax in the United Kingdom

When you die, you will want to make sure that your estate will go to the right people, be it your spouse, children, or other family members and friends. Inheritance tax can really take a chunk out of your estate and reduce the amount available to be passed on.<br> <br>Keep Below the Inheritance Tax Threshold<br> <br>Currently, the nil-rate band (also known as the inheritance tax threshold) is u00a3325,000. It has been announced that the tax threshold will remain at this level until 2026. For couples, the nil-rate band is transferrable, which means that it becomes u00a3650,000 instead. Essentially, this means that

Leading3
Download Presentation

Best Methods to Inherit Money without Paying Tax in the United Kingdom

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Best Methods to Inherit Money without Paying Tax in the United Kingdom When you die, you will want to make sure that your estate will go to the right people, be it your spouse, children, or other family members and friends. Inheritance tax can really take a chunk out of your estate and reduce the amount available to be passed on. Keep Below the Inheritance Tax Threshold Currently, the nil-rate band (also known as the inheritance tax threshold) is £325,000. It has been announced that the tax threshold will remain at this level until 2026. For couples, the nil-rate band is transferrable, which means that it becomes £650,000 instead. Essentially, this means that you will only be liable to pay tax on any amount that comes above the nil-rate band. There are a number of different ways that you can distribute your assets so that they remain below the £325,000 inheritance tax threshold. Give Away Your Assets If you have assets, then you always have the option of giving them away. If you do this and then survive for another seven years, all of the gifts are free and, as such, are not subject to any inheritance tax. Even if you die within those seven years, your inheritance tax will still be paid at a reduced scale Put Your Assets into a Trust This is another great piece of advice because if you place your assets into a trust, then they are not going to form part of your estate upon your death; as such, they won’t be counted towards your nil-rate band and will not be liable to inheritance tax. Once you have passed, it will be easy for your loved ones to use your trust. Take Out Some Life Insurance If you want to try and cover any potential liability imposed by inheritance tax, you should take out life insurance. This life insurance policy is for the potential inheritance tax bill.

  2. Leave Some of Your Money to Charity If you leave some of your money to charity, then this money is not going to be subject to any kind of inheritance tax. You can even take this one step further as if the amount you end up leaving to charity works out as equal to or more than 10% of your total assets, then the inheritance tax on your estate will be reduced from the regular 40% to 36%.

More Related