Inheritance Tax Planning

The OBR is predicting that £6.7bn will have been raised through Inheritance Tax (IHT) in the 2022-23 tax year. Once considered a tax on only the most wealthy, many more estates are now caught by this legislation. Most people with large estates accept that they will pay some tax, but there are a number of ways to legitimately reduce this tax burden through allowances and other approved strategies. We will start by calculating your current liability and then devise a plan to reduce it. 

 

The Financial Conduct Authority does not regulate some aspects of Trust, Tax and Estate Planning.

Spending

Our starting point is that your financial resources should be used for your benefit and only then should gifts and other estate planning options be considered. It is not always about eliminating tax, but ensuring that you take advantage of government approved schemes and allowances to maximise the proportion of your estate that can be left to your family. One of the easiest ways to reduce your estate value is to spend! We will start by looking at your expected expenditure and make sure your dreams and aspirations are budgeted for, and build in a fund to cover contingencies and unplanned expenditure. Once we are happy that you have sufficient income and capital to meet your needs, then we can devise a plan to improve the tax efficiency of your legacy. 

Gifts

From exemptions, potential exemptions, lifetime gifts and allowances, the legislation around the various gifting options and consequences can be complicated and confusing. We will incorporate these options into a workable and affordable financial plan and explain the consequences and detail behind each part of the plan. 

Trusts

Trusts are another complex area of estate planning. However, used appropriately, they can provide control, flexibility and intergenerational wealth transfer, in a tax efficient way. 

Qualifying Investments

There are some types of investments that may qualify for Business Property Relief (BPR). The rules are complex and this is a strategy that is only suitable for those with higher risk tolerances. However, with additional risk comes the potential for reward, and this option is attractive for those who do not wish to loose access or control.

In certain circumstances, and where the budget allows, a Whole of Life (WOL) policy can provide a method of covering the expected inheritance tax bill, and is useful if you do not wish to sell assets or make large gifts. We can model your estate value to estimate the future tax liability and recommend a policy to cover some, or all, of it.

Whole of life insurance

Strategy Wealth - IFA, IHT Planning
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Strategy Wealth Uk Ltd is an Appointed Representative of ValidPath Limited which is authorised and regulated by the Financial Conduct Authority, Firm Reference Number 197107. Strategy Wealth is a trading name of Strategy Wealth Uk Ltd which is registered in England and Wales no. 14838686. Registered office 45 Tanwood View, Bodmin, Cornwall, PL31 2PN. Directors: David Ellicott & Michael Rowan.

The information and guidance provided within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

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