Clarkwell & Co. is an experienced agency in offering comprehensive Inheritance Tax services in London. Inheritance tax planning is a sensitive issue, and we do well in that. Our team is highly trained and experienced to handle your requirements effectively using their knowledge in this domain. Taking into consideration all of your specific circumstances, we can provide customised solutions to help your family reduce potential risks and protect your assets. Get a quote now and forget about inheritance tax planning complexities forever.
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Expert Inheritance Tax Services For London Families
We know how challenging inheritance tax planning might be, so we are glad to introduce our services for Inheritance Tax in London. With our help, you might easily manage your estate without any complications. Our team will provide you with professional assistance and take care of all your documents and paperwork, so you can save time and resources for more important things.
We Provide Comprehensive Inheritance Tax Services
Estate Planning
Strategic planning to minimise inheritance tax liabilities.
Trusts and Wills
Guidance on setting up trusts and drafting wills to protect your assets.
Tax Reliefs
Identifying and applying for relevant tax reliefs and exemptions.
Tax Solutions Customised For Inheritance Planning
Clarkwell & Co. provides personalised Inheritance Tax services in London, ensuring your estate is managed efficiently and effectively.
Customised To Your Needs
Customised inheritance tax planning to suit your specific circumstances.
Comprehensive Financial Solutions
Complete support including estate planning, tax advice, and asset management.
Client-Centric Approach
We prioritise transparency and clear communication with our clients.
Expert Legal Guidance
Professional advice on all legal aspects of inheritance tax planning.
Assurance With Fixed Pricing & Money Back Guarantee
Transparent pricing with no hidden costs and a money-back guarantee for your peace of mind.
Hire The Best Inheritance Tax Services In London
Inheritance Tax (IHT) FAQ
What is Inheritance Tax (IHT)?
Inheritance Tax (IHT) is a tax on the estate (the property, money, and possessions) of someone who has died. In the UK, the standard rate is 40% and is charged on the part of the estate that exceeds the tax-free threshold (nil rate band) of £325,000.
Who has to pay Inheritance Tax?
The beneficiaries of an estate are responsible for paying IHT. Usually, the tax is paid from the estate itself, handled by the executor of the will or the administrator if there is no will.
What is the current IHT threshold?
As of 2022, the IHT threshold, also known as the nil rate band, is £325,000 per individual. This threshold is set to remain until 2028. Any part of the estate exceeding this threshold may be subject to a 40% tax rate.
Are there any exemptions or reliefs for Inheritance Tax?
Yes, there are several exemptions and reliefs:
- Spouse or Civil Partner Exemption: Transfers between spouses or civil partners are generally exempt from IHT.
- Annual Exemption: You can give away up to £3,000 each year free of IHT.
- Charitable Donations: Gifts to registered charities are exempt from IHT.
- Small Gifts Exemption: You can give away gifts of up to £250 to any number of people each tax year, free of IHT.
- Business Relief: Some business assets may qualify for 50% or 100% relief.
Agricultural Relief: Certain agricultural property may qualify for 100% relief.
How can I reduce my IHT liability?
There are several strategies to reduce IHT liability:
- Gifting: Making use of annual gift allowances and other exempted gifts.
- Trusts: Placing assets in trusts can help manage and reduce IHT liabilities.
- Life Insurance: Taking out a life insurance policy to cover potential IHT liabilities.
Spousal Transfers: Utilising the spousal exemption to transfer assets to a spouse or civil partner.
How does the Residence Nil Rate Band (RNRB) work?
The Residence Nil Rate Band (RNRB) is an additional allowance available if you pass your main home to your direct descendants (children or grandchildren). As of the latest update, it allows for an additional £175,000 on top of the standard nil rate band, potentially increasing the tax-free threshold to £500,000 per individual or £1 million per couple.
Can the nil rate band be transferred between spouses?
Yes, any unused portion of the nil rate band can be transferred to a surviving spouse or civil partner, effectively doubling the threshold to £650,000 for couples.
What gifts are exempt from Inheritance Tax?
Several types of gifts are exempt from IHT, including:
- Annual Exemption: You can give away £3,000 worth of gifts each tax year without them being added to the value of your estate.
- Small Gifts: You can give away up to £250 to as many people as you like each tax year, provided they haven’t received your £3,000 annual exemption.
- Wedding or Civil Partnership Gifts: You can give gifts up to £5,000 to your children, £2,500 to your grandchildren, and £1,000 to others as wedding or civil partnership gifts.
- Regular Gifts from Income: If you make regular gifts out of your after-tax income that do not affect your standard of living, these may also be exempt.
What happens if I give away assets before I die?
Gifts made before you die can reduce the value of your estate, but if you die within seven years of making the gift, it may still be subject to IHT. This is known as the “7-year rule” or “taper relief.”
What is the 7-year rule and taper relief?
The 7-year rule states that if you give away assets and survive for seven years after making the gift, the gift is exempt from IHT. If you die within seven years, the gift may still be subject to IHT, but the rate of tax can be reduced (taper relief) depending on how many years have passed since the gift was made:
- Less than 3 years: 40%
- 3 to 4 years: 32%
- 4 to 5 years: 24%
- 5 to 6 years: 16%
- 6 to 7 years: 8%
- More than 7 years: 0%
What is probate, and why is it necessary?
Probate is the legal process of administering the estate of a deceased person, including distributing assets according to the will and paying any taxes owed. It is necessary to obtain legal permission to deal with the deceased person’s assets.
How can Clarkwell & Co help with IHT planning?
Clarkwell & Co offers comprehensive IHT planning services, including:
- Estate Planning: Strategies to minimise IHT through lifetime gifts, trusts, and tax-efficient wills.
- IHT Calculations: Estimating potential IHT liabilities and identifying opportunities to reduce tax exposure.
- Probate and Estate Administration: Assisting executors and administrators with obtaining probate and managing IHT liabilities.
How do I get started with Clarkwell & Co's IHT services?
To get started, contact us to schedule a consultation. We will assess your needs, discuss your estate, and develop a tailored plan to help you mitigate IHT liabilities and protect your wealth for future generations.
Why Is Clarkwell & Co The Best Option For Inheritance Tax Services In London?
Choosing Clarkwell & Co. ensures you receive the best Inheritance Tax service in London. Our commitment to excellence and client satisfaction sets us apart.
Premium Quality
High-quality inheritance tax services customised to your individual needs.
Financial Enlightenment
Keeping you informed and prepared throughout the planning process.
Effortless Compliance
Managing all aspects of legal compliance and reporting for you.
Relentless Pursuit
Strategies aimed at securing your family’s financial future.
Our Core Services
Business Accounts and Tax Return
Ensure your business accounts and tax returns are accurate and timely with our comprehensive service. We handle everything from financial statements to tax filings, ensuring compliance and peace of mind.
VAT Returns
Simplify your VAT returns with our expert assistance. We ensure that your VAT submissions are accurate and compliant, helping you avoid penalties and streamline your financial processes.
Bookkeeping and Management Accounts
Maintain precise financial records with our bookkeeping and management accounts service. We provide detailed insights and reports to help you manage your business finances effectively.
Payroll and Pensions Auto Enrollment
Streamline your payroll and pension management with our professional services. We ensure accurate and timely payroll processing and compliance with pension auto-enrolment regulations.
Tax Planning and Investigations
Optimise your tax strategy with our tax planning services. We offer expert advice to minimise your tax liabilities and provide support during tax investigations, ensuring your business stays compliant.
Company Secretarial Services
Manage your corporate governance with our company secretarial services. We handle company formations, compliance filings, and administrative duties, ensuring your business meets all legal requirements.