Inheritance Tax

  Does this apply to you?

Inheritance Tax is a tax charged on wealth on death, certain life time gifts and on certain transfers in and out of trusts.

Not everyone pays Inheritance Tax. It's only due if your estate - including any assets held in trust and gifts made within seven years of death - is valued over the current Inheritance Tax threshold. The tax is payable at 40% on the amount over this threshold.

Our areas of advice include:

  • A review of your current financial planning arrangements

  • Creative trust planning to mitigate inheritance tax

  • Planning for retirement

Sometimes, even if your estate is over the threshold, you can pass on assets without having to pay Inheritance Tax.

Examples include:

  • Spouse or civil partner exemption
    Your estate usually doesn't owe Inheritance Tax on anything you leave to a spouse or civil partner who has their permanent home in the UK - nor on gifts you make to them in your lifetime - even if the amount is over the threshold

  • Charity exemption
    Any gifts you make to a 'qualifying' charity - during your lifetime or in your will - will be exempt from Inheritance Tax

  • Potentially exempt transfers
    If you survive for seven years after making a gift to someone, the gift is generally exempt from Inheritance Tax, no matter what the value

  • Annual exemption
    You can give up to 3,000 away each year, either as a single gift or as several gifts adding up to that amount - you can also use your unused allowance from the previous year but you use the current years allowance first.

  • Small gift exemption
    You can make small gifts of up to 250 to as many individuals as you like tax-free

  • Wedding and civil partnership gifts
    Gifts to someone getting married or registering a civil partnership are exempt up to a certain amount.

  • Business, Woodland, Heritage and Farm Relief
    If the deceased owned a business, farm, woodland or National Heritage property, some relief from Inheritance Tax may be available.


Speak to Auxesia Accountancy about your specific requirements and we can advise you on the tax implications and help you minimise the tax liabilities. Call us now on:

Tel:         01277 725252

Applicable to:  
Businesses Businesses
Individuals Individuals
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