UK INHERITANCE TAX MANCHESTER
“Just a quick thank you your law firm were so helpful and accommodating for my mother and father in Manchester.”
“Our whole family would just like to take this opportunity to thank your law firm for all your help steering us through the process of finalising our parents estate. Finding a local family law firm in Manchester who have been diligent and patient has been an absolute pleasure”.
“My Father told me he is now greatly relieved that his will and other affairs are at last in order. Thanks so much for your help.”
Do you plan to create a will? Or perhaps, are you an administrator or an executor for the estate of a deceased individual? Do you happen to be a beneficiary in a will? If you find yourself in any of these situations, there is one common ground for all of these – and that would be, that all of these situations fall under UK executry law and because of that, you will eventually have to deal with all kinds of legal duties and obligations including the payment of the UK Inheritance Tax. In this article, we will discuss the UK Inheritance Tax, what it is all about, why it is imposed, and how you can actually reduce the amount of UK Inheritance Tax that your estate will have to pay legally by simply creating a will with certain provisions included in order to reduce or even completely avoid the UK Inheritance Tax. Therefore, whether you happen to be an executor for a will or if you plan to make your own will for your own estate after your death, read on because you will no doubt find many useful tidbits of information here.
What Is The UK Inheritance Tax?
The inheritance tax in the UK has been imposed since 1986. Basically, it is a financial burden that is imposed upon the estate of the deceased person. In order to avoid confusion, you should first know that the “estate” refers to all the properties and finances held by the deceased individual during his/her lifetime. According to international standards, there is actually distinction between an estate tax that is directly imposed upon the estate of the deceased and an inheritance tax, which is imposed on the legacies received by the beneficiaries – however, in the UK, the inheritance tax is imposed on the estate and is therefore technically also an estate tax.
Why is it imposed?
The inheritance tax is actually a type of transfer tax. It can be viewed as a type of transaction fee for the transfer of title from one person to another. Fortunately, there is actually an inheritance tax threshold in effect in the UK. As long as your estate does not exceed this threshold, then your estate will be tax free.
The inheritance tax is calculated based on anything that exceeds the threshold of £325,000. It applies during the taxable year for now. It is set to rise in 2019.
How much is the inheritance tax?
In the UK, the rate is 40% over any properties or finances that exceed the £325,000 threshold.
Are there ways to minimize or avoid this tax?
Yes. There are actually several ways to do this. The simplest option is to make a will. By planning the distribution of your estate carefully, you can greatly minimize the amount of inheritance tax imposed on your estate with the help of a competent solicitor who specializes in estate planning and executry law. Gifting or giving your assets away is another method. Gifts are tax-free if the giver survives for at least 7 years after giving the gift.