Fewer people will be liable to pay Inheritance Tax (IHT) under changes set to be introduced by the new government.
The Conservative Party had included a commitment in their manifesto to increase the threshold from £325,000 to £1million.
The Tories had fought the 2010 election making a similar pledge, but the proposals were dropped after David Cameron signed a coalition agreement with the Liberal Democrats.
Now after securing an overall majority, the Prime Minister has the authority to implement the changes.
Outlining why he thought an overhaul was important, Mr Cameron said: “You want to know that even after you’re gone, when you’re not on the phone and not physically there, you can still provide for [your children].
“That wish to pass something on is about the most basic, human and natural instinct there is. And that’s why for a long, long time I have wanted to act on inheritance.”
The experts at the JW Hinks Lifestyle Services team understand that death may be a subject you prefer not to think about too much, but seeking expert advice now will help individuals protect their assets for their family in the future.
We will work with individuals to identify ways to minimise their inheritance tax liabilities, reviewing their estate – including their personal and business assets – and their will, to ensure that they are as tax-efficient as possible.
We’ll also look at tax minimisation opportunities, including trusts, and advise on ways to make best use of the gifts and exemptions allowed under the inheritance tax regime, including lifetime and annual gifts.
Once the threshold is raised, there will be clear implications for estate planning, as only the largest will still be eligible to pay the tax.
At JW Hinks, our Lifestyle Services team can provide you with comprehensive advice.
Contact us for more information.