Inheritance Tax (IHT)

‘You can’t take it with you, but should you be free to pass it on?’

Increasing general wealth including rises in property prices means that few doctors will be able to ignore inheritance tax.  There is now a potential IHT liability for anyone with an estate value above £300,000.

Once this threshold is exceeded your tax liability can mount up rapidly.  All assets and possessions including property are aggregated and the current rate of tax is 40% and levied on the value of all estates above £300,000.

The amount of tax you may have to pay :-

Size of Estate       Tax Payable

£500,000              £80,000

£1,000,000           £280,000    

£1,500,000           £480,000

£2,000,000           £680,000

Most people would prefer their hard earned assets to go to their families on death rather than the taxman - particularly as they have paid tax all their lives!

Fortunately, there are various ways of minimising or even avoiding inheritance tax altogether. Some are quite simple, some more complex.  However, they often need advance action so the sooner you take action the better chance you or your beneficiaries have of avoiding the tax.

Expert guidance is essential in this field and we can help you understand:-

• What is included in your estate
• How gifts are taxed
• The importance of making a will
• What reliefs are available
• The use of trusts and life assurance

DON’T LET THE TAXMAN BE YOUR MAIN BENEFICIARY!