Menu
Estate & Inheritance Tax Planning in Cambridge
Achieving any degree of success during our lifetime will mean we will have paid our fair share of taxes and most of us want to pass on as much of our estate as possible to our children or grandchildren.
our estate planning video
Inheritance Tax is a tax paid on one’s estate when we die
Originally known as ‘Death Duty’ in 1894, Inheritance Tax is a tax paid on one’s estate when we die but is sometimes payable on trusts, or gifts made during our lifetime. Please watch our short video about estate planning. We hope you will find it helpful.
INHERITANCE TAX
Inheritance tax can cost your estate up to 40%
HMRC has seen a huge growth in tax receipts from this source, reaching over £7.5 billion in the financial year 2023/24. It’s no longer just the rich who are affected now because property values have risen so much over the last 20 years bu the Nil Rate band hasn’t changed since October 2007.
The individual threshold above which IHT is paid is just £325,000 or up to £650,000 for a married couple (including civil partnerships), or 36% if the estate qualifies for a reduced rate as a result of a charitable donation. The introduction of the Nil Rate Residence Allowance in 2017, provides an additional £175,000 per person which means a married couple may be able to leave up to £1 million free from IHT.
However, there are a number of financial planning methods that can legitimately help reduce your estate’s inheritance tax liability, which could result in tens of thousands if not hundreds of thousands of pounds in savings.
