At IHT Advice, we help individuals and families in Bridport DT6 3 and across the UK to protect their wealth, reduce tax liabilities, and ensure a smooth transfer of assets to the next generation.

With ever-changing tax laws and complex regulations, proper preparation is essential to minimise or eliminate excessive inheritance tax burdens. Whether you are passing on property, investments, or business assets, our experts can help you maximise your estate and safeguard your family’s financial future.

What Is Inheritance Tax (IHT) And Who Pays It?

Inheritance tax (IHT) is a tax charged on a deceased person’s estate when the total value exceeds £325,000. However, certain allowances, such as the Residence Nil Rate Band (RNRB), may increase this threshold for homeowners who pass their property to direct descendants.

Usually, the estate’s executor pays the tax from the estate’s assets before distributing them to the beneficiaries.

How Much Inheritance Tax Will I Have To Pay?

The standard rate of inheritance tax is 40% on estates valued above £325,000. However, exemptions, reliefs, and allowances can help to reduce this burden.

Married couples and civil partners can combine their allowances, increasing the tax-free threshold to £650,000 when passing wealth to their children. Charitable donations, business reliefs, and tax-free gifts are also effective ways to lower inheritance tax.

What Are The Best Strategies For Reducing Inheritance Tax in Bridport?

Inheritance tax can be significantly reduced by making tax-free gifts during your lifetime, allowing you to transfer wealth while staying within the annual gifting exemption of £3,000.

Trusts are another effective way to protect assets and ensure they are passed on in a tax-efficient manner. Additionally, leaving at least 10% of your estate to charity can reduce the inheritance tax rate on the remaining estate from 40% to 36%.

Contact IHT Advice to explore more strategies for reducing inheritance tax.

Can I Avoid Paying Inheritance Tax By Gifting Assets?

You may avoid inheritance tax by utilising the 7-year rule, which states that gifts made more than seven years before death are exempt from IHT. However, if you pass away within that period, the gift may still be subject to tapered tax rates.

Additional exemptions for small gifts, wedding gifts, and regular financial support allow tax-free wealth transfers.

How Can Business Owners Reduce Inheritance Tax in Bridport?

Business owners can benefit from IHT advice by using Business Relief (BR), which allows qualifying business assets to be passed on either free of Inheritance Tax or at a reduced rate.

Certain assets, such as shares in private companies and specific agricultural properties, may be entirely tax-free if held for at least two years before death.

Business succession planning ensures company assets are protected and efficiently transferred to the next generation. Family-owned businesses may also qualify for specific exemptions, making proactive inheritance tax planning crucial for entrepreneurs.

What Are The Property Inheritance Tax Rules?

IHT advice for property includes the £175,000 Residence Nil Rate Band, strategic gifting, and downsizing relief.

The Residence Nil Rate Band (RNRB) allows homeowners to pass on their main residence tax-free up to £175,000, increasing the potential tax-free threshold to £500,000 for individuals and £1 million for married couples.

Strategic property gifts can help minimise unexpected tax liabilities. If you sell or downsize, downsizing relief may apply, allowing you to retain tax benefits even after purchasing a smaller home.

When Should I Start Planning For Inheritance Tax?

Start seeking IHT advice as early as possible to make the most of tax-free allowances, maximise relief, and adapt to changes in legislation. Changes in inheritance tax regulations can impact how assets should be structured, making regular estate plan reviews essential.

Contact IHT Advice in Bridport DT6 3 today to start planning your estate in a tax-efficient manner and securing your financial future.

Find More Info

Make sure you contact us today for great inheritance tax advice services in Bridport.

For more information on IHT Advice in Bridport DT6 3, fill in the contact form below to receive a free quote today.