Inheritance Tax Planning

Inheritance tax (IHT) is calculated based on the value of the property, money and possessions of someone who has died, if the total value of their assets exceeds £325,000.

At Navigate Wealth, we offer advice on the most tax-efficient options available to you in order to ensure your family members receive the most financial relief possible in the event of your death.

To find out more about the avenues available to you, or to arrange a free consultation, contact the Navigate Wealth team on 0345 340 9690 or use our submission form.

What is inheritance tax?

Inheritance tax has to be paid before probate is granted (when all assets are distributed) and the inheritance is released to your loved ones. Inheritance tax can take a sizeable proportion of the wealth you wish to leave to your family.

According to inheritance tax law, your estate includes:

Your home and any other properties you own
Your possessions
Bank and building society accounts
ISAs
Any other investments
Insurance policies not paid out under trust arrangements

How do I reduce inheritance tax liability?

There are a number of ways in which we can help you manage and distribute your wealth, to reduce the amount of inheritance tax that is applied after your death. Our specialist advisers can offer advice on the following:

Lifetime gifts
Structuring wills
Setting up trusts
Restructuring your inheritance tax plans following a marriage or divorce
Structuring your affairs to make the most of reliefs
Investments with favourable inheritance tax treatment
Deeds of variation - where a will, or part of it, can be varied after death in order to save inheritance tax

One of the most valuable inheritance tax reliefs is Business Property Relief, which allows qualifying business assets to be passed to the next generation without inheritance tax. Navigate Wealth can help you to decipher this area as part of your inheritance tax planning.

Changes to inheritance tax in 2017

Changes were made to inheritance tax law on 6th April 2017 that may benefit individuals who want to pass on their estate to their children or grandchildren.

The changes meant that in addition to the existing tax-free threshold of £325,000, the government introduced a Residential Nil-Rate Band (RNBR) for estates worth up to £2 million. The RNBR will only apply when a home is being passed on to children or grandchildren and is being phased in annually starting in the 2017/2018 tax year.

2017-18: £100,000
2018-19: £125,000
2019-20: £150,000
2020-2021: £175,000

It is possible for married couples and civil partners to transfer their RNRB to double their tax-free allowance. The RNRB is also transferable so it will effectively be worth £250,000 by April 2020. This means that by 2020, couples will be able to pass on a total of £1 million in assets without paying any inheritance tax.

Contact us

To find out more about inheritance tax, or to arrange a free consultation, you can contact the Navigate Wealth team on 0345 340 9690 or use our submission form.

Testimonials

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Mr T, Cheshire

"We cannot thank you & the team enough for everything you have done. Everything went so smoothly, which I know is due to your professionalism and expertise. We would highly recommend you to anyone who needed similar help."

Mr B, Jersey

"As an overseas customer finding the right advice and help is of the utmost importance. Richard and his team at Navigate Wealth exceeded my expectations and helped me to transfer my pension quickly and efficiently. I have no hesitation in recommending Navigate Wealth as pension consultants."

Mr S, Madrid

"I was looking to transfer my occupational pension to a self-invested pension plan and needed to find a professional adviser in order to comply with regulatory requirements. Richard Bamforth was very helpful not only in helping me process the transfer at a reasonable cost, but also in giving me his advice and insights on consequences and possibilities that I had not appreciated previously, despite my being financially literate and having spent my career in financial services. I would thoroughly recommend Richard to anyone who is considering seeking advice on pensions, however informed they might think they are."

Mrs H, Essex

“I was very pleased with the straightforward advice received from Richard Bamforth when looking to consolidate a relatively small defined benefit pension into my main small self-administered scheme (SSAS). Most advisors either wanted to charge a huge amount for the government-required advice, or wouldn’t even deal with my enquiry since I wasn’t looking to use their managed funds. Richard was thorough in his investigation, and reviewed the options carefully, while taking into account my individual situation. I would recommend Richard Bamforth's services to anyone looking for expert, independent financial advice.”