Inheritance tax is now a major problem for most families. Since the turn of the millennium, house prices have seen dramatic increases way above the rate of inflation. With this increase in wealth, even relatively modest estates are now facing a tax bill of 40%.
Unfortunately, Her Majesty’s Revenue and Customs seem determined to close every loop hole the moment it is discovered – even retrospectively! In March 2006, more anti-avoidance legislation was introduced and we saw a major change in the taxation of most types of trust.
We firmly believe that with careful planning and the ability to think outside the box, any potential tax liability can be significantly reduced or even negated altogether. We have a wealth of experience in all aspects of estate planning, which ranges from a simple nil rate band discretionary will trust, to more aggressive trusts and all the main inheritance tax mitigation schemes, for some of our clients we may even look to borrow against their wealth in order to reduce the final bill. Any tax advice would be dependent on individual circumstances and may be subject to change in the future. Although we are not tax advisers, we can give you generic tax guidance on estate planning.