Due to soaring house prices, and a static personal Nil Rate Band, Estate Planning to mitigate Inheritance Tax has never been more important.
If your total estate is worth in excess of £325,000 (£650,000 for couples), in the current financial year (2023/24), then your assets above this nil rate band level will potentially be taxed at up to 40% on your death. In addition to the inheritance tax standard nil rate band, a main residence nil rate band (MRNRB) was introduced in 6 April 2017. This is available when residential property is left to direct descendants. Initially, the MRNRB was set at £100,000 but has increased by £25,000 each year until it reached £175,000 in April of 2020, and now onwards. Just like the standard nil rate band, any unused MRNRB on the first death of a married couple or civil partners has the potential to be transferable even if the first death occurred before 6 April 2017. Although, the MRNRB does come with conditions attached and so may not be available (or available in full) to everyone.
However, with specialist advice from Meridian Financial Services, there could be a number of ways to reduce, or even mitigate, any potentially liability.
With first-hand experience of helping clients within this marketplace, our services can include using:
- Investments (including Business Relief Portfolios)
- Discretionary Trusts
- Absolute Trusts
- Gift & Loan Trusts
- Loan Trusts
- Will Planning
- Whole of Life Assurances
For a non-obligation review to ascertain if you are caught in the IHT trap, please contact Meridian Financial Services.
Tax treatment is based on individual circumstances and may be subject to change in the future.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.
The Financial Ombudsman Service is available to mediate individual complaints that clients and financial services businesses aren’t able to resolve themselves. To contact the Financial Ombudsman Service please visit:
Investment: We are covered by the Financial Services Compensation Scheme, which covers a maximum limit of £85,000.
The Financial Conduct Authority does not regulate Will Writing, Inheritance Tax and Trust Planning.